H. R. 2854—74
be released by the Secretary to provide, on a donation or
sale basis, emergency food assistance to developing countries
at such time as the domestic supply of the eligible commodities
is so limited that quantities of the eligible commodities cannot
be made available for disposition under the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 et
seq.) (other than disposition for urgent humanitarian purposes
under section 401 of the Act (7 U.S.C. 1731)).
‘‘(3) PROCESSING
OF
ELIGIBLE
COMMODITIES.—Eligible
commodities that are released from the reserve established
under this section may be processed in the United States and
shipped to a developing country when conditions in the recipient
country require processing.
‘‘(4) EXCHANGE.—The Secretary may exchange an eligible
commodity for another United States commodity of equal value,
including powdered milk, pulses, and vegetable oil.
‘‘(5) USE OF NORMAL COMMERCIAL PRACTICES.—To the maxi-
mum extent practicable consistent with the fulfillment of the
purposes of this section and the effective and efficient adminis-
tration of this section, the Secretary shall use the usual and
customary channels, facilities, arrangements, and practices of
trade and commerce to carry out this subsection.
‘‘(d) MANAGEMENT OF ELIGIBLE COMMODITIES.—The Secretary
shall provide—
‘‘(1) for the management of eligible commodities in the
reserve established under this section as to location and quality
of eligible commodities needed to meet emergency situations;
and
‘‘(2) for the periodic rotation or replacement of stocks of
eligible commodities in the reserve to avoid spoilage and
deterioration of the commodities.
‘‘(e) TREATMENT
OF RESERVE UNDER OTHER LAW.—Eligible
commodities in the reserve established under this section shall
not be—
‘‘(1) considered a part of the total domestic supply (includ-
ing carryover) for the purpose of subsection (c) or for the pur-
pose of administering the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
‘‘(2) subject to any quantitative limitation on exports that
may be imposed under section 7 of the Export Administration
Act of 1979 (50 U.S.C. App. 2406).
‘‘(f) USE OF COMMODITY CREDIT CORPORATION.—
‘‘(1) IN GENERAL.—Subject to the limitations provided in
this section, the funds, facilities, and authorities of the
Commodity Credit Corporation shall be used by the Secretary
in carrying out this section, except that any restriction
applicable to the acquisition, storage, or disposition of eligible
commodities owned or controlled by the Commodity Credit Cor-
poration shall not apply.
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN GENERAL.—The Commodity Credit Corporation
shall be reimbursed for the release of eligible commodities
from funds made available to carry out the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1691 et seq.).
‘‘(B) BASIS FOR REIMBURSEMENT.—The reimbursement
shall be made on the basis of the lesser of—
H. R. 2854—75
‘‘(i) the actual costs incurred by the Commodity
Credit Corporation with respect to the eligible commod-
ity; or
‘‘(ii) the export market price of the eligible commod-
ity (as determined by the Secretary) as of the time
the eligible commodity is released from the reserve.
‘‘(C) SOURCE OF FUNDS.—The reimbursement may be
made from funds appropriated for subsequent fiscal years.
‘‘(g) FINALITY OF DETERMINATION.—Any determination by the
Secretary under this section shall be final.
‘‘(h) TERMINATION OF AUTHORITY.—
‘‘(1) IN
GENERAL.—The authority to replenish stocks of
eligible commodities to maintain the reserve established under
this section shall terminate on September 30, 2002.
‘‘(2) 
DISPOSAL
OF
ELIGIBLE
COMMODITIES.—Eligible
commodities remaining in the reserve after September 30, 2002,
shall be disposed of by release for use in providing for emer-
gency humanitarian food needs in developing countries as pro-
vided in this section.’’.
(b) CONFORMING AMENDMENT.—Section 208(d) of the Agricul-
tural Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d))
is amended by striking paragraph (2) and inserting the following:
‘‘(2) APPLICABILITY
OF
CERTAIN
PROVISIONS.—Subsections
(c), (d), (e), and (f)(2) of section 302 of the Food Security
Commodity Reserve Act of 1996 shall apply to commodities
in any reserve established under paragraph (1), except that
the references to ‘eligible commodities’ in the subsections shall
be deemed to be references to ‘agricultural commodities’.’’.
SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL
PRODUCTION.
Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736n) is repealed.
SEC. 227. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)’’; and
(ii) in the first sentence, by inserting ‘‘intergovern-
mental organizations,’’ after ‘‘cooperatives,’’; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ‘‘203’’ and inserting
‘‘406’’;
(3) in subsection (f)—
(A) in paragraph (1)(B), by striking ‘‘in the case of
the independent states of the former Soviet Union,’’;
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ‘‘for each of fiscal
years 1996 through 2002’’ after ‘‘may be used’’; and
(D) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ‘‘1995’’ and inserting
‘‘2002’’;
(5) in subsection (j), by striking ‘‘shall’’ and inserting ‘‘may’’;
(6) in subsection (k), by striking ‘‘1995’’ and inserting
‘‘2002’’;
H. R. 2854—76
(7) in subsection (l)(1)—
(A) by striking ‘‘1991 through 1995’’ and inserting
‘‘1996 through 2002’’; and
(B) by inserting ‘‘, and to provide technical assistance
for monetization programs,’’ after ‘‘monitoring of food
assistance programs’’; and
(8) in subsection (m)—
(A) by striking ‘‘with respect to the independent states
of the former Soviet Union’’;
(B) by striking ‘‘private voluntary organizations and
cooperatives’’ each place it appears and inserting ‘‘agricul-
tural trade organizations, intergovernmental organizations,
private voluntary organizations, and cooperatives’’; and
(C) in paragraph (2), by striking ‘‘in the independent
states’’.
SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT
SALES FINANCING.
Section 402 of the Mutual Security Act of 1954 (22 U.S.C.
1922) is repealed.
SEC. 229. STIMULATION OF FOREIGN PRODUCTION.
Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter
526; 50 U.S.C. App. 1917), is repealed.
Subtitle B—Amendments to Agricultural
Trade Act of 1978
SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) IN GENERAL.—Section 103 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5603) is amended to read as follows:
‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
‘‘(a) IN GENERAL.—The Secretary shall develop a strategy for
implementing Federal agricultural export promotion programs that
takes into account the new market opportunities for agricultural
products, including opportunities that result from—
‘‘(1) the North American Free Trade Agreement and the
Uruguay Round Agreements;
‘‘(2) any accession to membership in the World Trade
Organization;
‘‘(3) the continued economic growth in the Pacific Rim;
and
‘‘(4) other developments.
‘‘(b) PURPOSE OF STRATEGY.—The strategy developed under sub-
section (a) shall encourage the maintenance, development, and
expansion of export markets for United States agricultural commod-
ities and related products, including high-value and value-added
products.
‘‘(c) GOALS OF STRATEGY.—The strategy developed under sub-
section (a) shall have the following goals:
‘‘(1) Increase the value of United States agricultural exports
each year.
‘‘(2) Increase the value of United States agricultural exports
each year at a faster rate than the rate of increase in the
value of overall world export trade in agricultural products.
H. R. 2854—77
‘‘(3) Increase the value of United States high-value and
value-added agricultural exports each year.
‘‘(4) Increase the value of United States high-value and
value-added agricultural exports each year at a faster rate
than the rate of increase in the value of overall world export
trade in high-value and value-added agricultural products.
‘‘(5) Ensure that to the extent practicable—
‘‘(A) all obligations undertaken in the Uruguay Round
Agreement on Agriculture that significantly increase access
for United States agricultural commodities are imple-
mented to the extent required by the Uruguay Round
Agreements; or
‘‘(B) applicable United States laws are used to secure
United States rights under the Uruguay Round Agreement
on Agriculture.
‘‘(d) PRIORITY MARKETS.—
‘‘(1) IDENTIFICATION OF MARKETS.—In developing the strat-
egy required under subsection (a), the Secretary shall annually
identify as priority markets—
‘‘(A) those markets in which imports of agricultural
products show the greatest potential for increase; and
‘‘(B) those markets in which, with the assistance of
Federal export promotion programs, exports of United
States agricultural products show the greatest potential
for increase.
‘‘(2) IDENTIFICATION OF SUPPORTING OFFICES.—The Presi-
dent shall identify annually in the budget of the United States
Government submitted under section 1105 of title 31, United
States Code, each overseas office of the Foreign Agricultural
Service that provides assistance to United States exporters
in each of the priority markets identified under paragraph
(1).’’.
(b) SENSE OF CONGRESS.—It is the sense of Congress that—
(1) the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate should conduct a thorough review of
agricultural export and food aid programs not later than Decem-
ber 31, 1998; and
(2) the review should examine what changes, if any, need
to be made in the programs as a result of the effects of the
Agricultural Market Transition Act, the Uruguay Round Agree-
ments, changing world market conditions, and such other fac-
tors as the committees consider appropriate.
(c) ELIMINATION OF REPORT.—
(1) IN GENERAL.—Section 601 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5711) is repealed.
(2) CONFORMING AMENDMENT.—The last sentence of section
603 of the Agricultural Trade Act of 1978 (7 U.S.C. 5713)
is amended by striking ‘‘, in a consolidated report,’’ and all
that follows through ‘‘section 601’’ and inserting ‘‘or in a consoli-
dated report’’.
SEC. 242. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY
ROUND AGREEMENTS.
(a) IN GENERAL.—Title I of the Agricultural Trade Act of 1978
(7 U.S.C. 5601 et seq.) is amended by adding at the end the
following:
H. R. 2854—78
‘‘SEC. 106. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY
ROUND AGREEMENTS.
‘‘Not later than September 30 of each year, the Secretary shall
evaluate whether the obligations undertaken by foreign countries
under the Uruguay Round Agreement on Agriculture are being
fully implemented. If the Secretary has reason to believe (based
on the evaluation) that any foreign country, by not implementing
the obligations of the country, may be significantly constraining
an opportunity for United States agricultural exports, the Secretary
shall—
‘‘(1) submit the evaluation to the United States Trade Rep-
resentative; and
‘‘(2) transmit a copy of the evaluation to the Committee
on Agriculture, and the Committee on Ways and Means, of
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry, and the Committee on
Finance, of the Senate.’’.
(b) 
MONITORING
COMPLIANCE
WITH
SANITARY
AND
PHYTOSANITARY MEASURES.—Section 414 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5674) is amended by adding at the end
the following:
‘‘(c) 
MONITORING
COMPLIANCE
WITH
SANITARY
AND
PHYTOSANITARY
MEASURES.—The Secretary shall monitor the
compliance of World Trade Organization member countries with
the sanitary and phytosanitary measures of the Agreement on
Agriculture of the Uruguay Round of Multilateral Trade Negotia-
tions of the General Agreement on Tariffs and Trade. If the Sec-
retary has reason to believe that any country may have failed
to meet the commitment on sanitary and phytosanitary measures
under the Agreement in a manner that adversely impacts the
exports of a United States agricultural commodity, the Secretary
shall—
‘‘(1) provide such information to the United States Trade
Representative of the circumstances surrounding the matter
arising under this subsection; and
‘‘(2) with respect to any such circumstances that the Sec-
retary considers to have a continuing adverse effect on United
States agricultural exports, report to the Committee on Agri-
culture, and the Committee on Ways and Means, of the House
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry, and the Committee on Finance, of the Sen-
ate—
‘‘(A) that a country may have failed to meet the sani-
tary and phytosanitary commitments; and
‘‘(B) any notice given by the Secretary to the United
States Trade Representative.’’.
SEC. 243. EXPORT CREDITS.
(a) EXPORT CREDIT GUARANTEE PROGRAM.—Section 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended—
(1) in subsection (a)—
(A) by striking ‘‘GUARANTEES.—The’’ and inserting the
following: ‘‘GUARANTEES.—
‘‘(1) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(2) SUPPLIER CREDITS.—In carrying out this section, the
Commodity Credit Corporation may issue guarantees for the
H. R. 2854—79
repayment of credit made available for a period of not more
than 180 days by a United States exporter to a buyer in
a foreign country.’’;
(2) in subsection (f)—
(A) by striking ‘‘(f) RESTRICTIONS.—The’’ and inserting
the following:
‘‘(f) RESTRICTIONS.—
‘‘(1) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(2) CRITERIA FOR DETERMINATION.—In making the deter-
mination required under paragraph (1) with respect to credit
guarantees under subsection (b) for a country, the Secretary
may consider, in addition to financial, macroeconomic, and
monetary indicators—
‘‘(A) whether an International Monetary Fund standby
agreement, Paris Club rescheduling plan, or other economic
restructuring plan is in place with respect to the country;
‘‘(B) whether the country is addressing issues such
as—
‘‘(i) the convertibility of the currency of the country;
‘‘(ii) adequate legal protection for foreign invest-
ments;
‘‘(iii) the viability of the financial markets of the
country; and
‘‘(iv) adequate legal protection for the private prop-
erty rights of citizens of the country; or
‘‘(C) any other factors that are relevant to the ability
of the country to service the debt of the country.’’;
(3) by striking subsection (h) and inserting the following:
‘‘(h) 
UNITED
STATES
AGRICULTURAL
COMMODITIES.—The
Commodity Credit Corporation shall finance or guarantee under
this section only United States agricultural commodities.’’;
(4) in subsection (i)—
(A) by striking paragraph (1);
(B) by striking ‘‘INSTITUTIONS.—A financial’’ and insert-
ing the following: ‘‘INSTITUTIONS.—
‘‘(1) IN GENERAL.—A financial’’;
(C) by striking ‘‘(2) is’’ and inserting the following:
‘‘(A) is’’;
(D) by striking ‘‘(3) is’’ and inserting the following:
‘‘(B) is’’; and
(E) by adding at the end the following:
‘‘(2) THIRD COUNTRY BANKS.—The Commodity Credit Cor-
poration may guarantee under subsections (a) and (b) the repay-
ment of credit made available to finance an export sale irrespec-
tive of whether the obligor is located in the country to which
the export sale is destined.’’; and
(5) by striking subsection (k) and inserting the following:
‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—
‘‘(1) IN
GENERAL.—In issuing export credit guarantees
under this section, the Commodity Credit Corporation shall,
subject to paragraph (2), ensure that not less than 25 percent
for each of fiscal years 1996 and 1997, 30 percent for each
of fiscal years 1998 and 1999, and 35 percent for each of
fiscal years 2000, 2001, and 2002, of the total amount of credit
guarantees issued for a fiscal year is issued to promote the
export of processed or high-value agricultural products and
H. R. 2854—80
that the balance is issued to promote the export of bulk or
raw agricultural commodities.
‘‘(2) LIMITATION.—The percentage requirement of para-
graph (1) shall apply for a fiscal year to the extent that a
reduction in the total amount of credit guarantees issued for
the fiscal year is not required to meet the percentage require-
ment.’’.
(b) FUNDING LEVELS.—Section 211 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection
(b) and inserting the following:
‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—
‘‘(1) EXPORT CREDIT GUARANTEES.—The Commodity Credit
Corporation shall make available for each of fiscal years 1996
through 2002 not less than $5,500,000,000 in credit guarantees
under subsections (a) and (b) of section 202.
‘‘(2) LIMITATION
ON
ORIGINATION
FEE.—Notwithstanding
any other provision of law, the Secretary may not charge an
origination fee with respect to any credit guarantee transaction
under section 202(a) in excess of an amount equal to 1 percent
of the amount of credit to be guaranteed under the transaction,
except with respect to an export credit guarantee transaction
pursuant to section 1542(b) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
5622 note).’’.
(c) DEFINITION
OF UNITED STATES AGRICULTURAL COMMOD-
ITY.—Section 102(7) of the Agricultural Trade Act of 1978 (7 U.S.C.
5602(7)) is amended by striking subparagraphs (A) and (B) and
inserting the following:
‘‘(A) an agricultural commodity or product entirely pro-
duced in the United States; or
‘‘(B) a product of an agricultural commodity—
‘‘(i) 90 percent or more of the agricultural compo-
nents of which by weight, excluding packaging and
added water, is entirely produced in the United States;
and
‘‘(ii) that the Secretary determines to be a high
value agricultural product.’’.
(d) REGULATIONS.—Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall issue
regulations to carry out the amendments made by this section.
SEC. 244. MARKET ACCESS PROGRAM.
(a) CHANGE OF NAME.—
(1) IN GENERAL.—Section 203 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623) is amended—
(A) in the section heading, by striking ‘‘MARKET PRO-
MOTION PROGRAM’’ and inserting ‘‘MARKET ACCESS PRO-
GRAM’’; and
(B) by striking ‘‘marketing promotion program’’ each
place it appears and inserting ‘‘market access program’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 1302 of the Omnibus Budget Reconciliation
Act of 1993 (Public Law 103–66; 7 U.S.C. 5623) is
amended—
(i) in the section heading, by striking ‘‘MARKET
PROMOTION PROGRAM’’ and inserting ‘‘MARKET ACCESS
PROGRAM’’; and
H. R. 2854—81
(ii) in subsection (b), by striking ‘‘market promotion
program’’ each place it appears and inserting ‘‘market
access program’’.
(B) Section 211(c) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)) is amended—
(i) in the subsection heading, by striking ‘‘MARKET-
ING PROMOTION PROGRAMS’’ and inserting ‘‘MARKET
ACCESS PROGRAMS’’;
(ii) by striking ‘‘market promotion activities’’ and
inserting ‘‘market access activities’’;
(iii) in paragraph (1), by striking ‘‘market develop-
ment program’’ and inserting ‘‘market access program’’;
and
(iv) in paragraph (2), by striking ‘‘marketing pro-
motion program’’ and inserting ‘‘market access pro-
gram’’.
(b) USE OF FUNDS.—Section 203(f) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623(f)) is amended by adding at the end
the following:
‘‘(4) USE OF FUNDS.—Funds made available to carry out
this section—
‘‘(A) shall not be used to provide direct assistance to
any foreign for-profit corporation for the corporation’s use
in promoting foreign-produced products;
‘‘(B) shall not be used to provide direct assistance to
any for-profit corporation that is not recognized as a small-
business concern described in section 3(a) of the Small
Business Act (15 U.S.C. 632(a)), excluding—
‘‘(i) a cooperative;
‘‘(ii) an association described in the first section
of the Act entitled ‘An Act To authorize association
of producers of agricultural products’, approved Feb-
ruary 18, 1922 (7 U.S.C. 291); and
‘‘(iii) a nonprofit trade association; and
‘‘(C) may be used by a United States trade association,
cooperative, or small business for individual branded pro-
motional activity related to a United States branded prod-
uct, if the beneficiaries of the activity have provided funds
for the activity in an amount that is at least equivalent
to the amount of assistance provided under this section.’’.
(c) FUNDING.—Effective October 1, 1995, section 211(c)(1) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is
amended—
(1) by striking ‘‘and’’ after ‘‘1991 through 1993,’’; and
(2) by striking ‘‘through 1997,’’ and inserting ‘‘through 1995,
and not more than $90,000,000 for each of fiscal years 1996
through 2002,’’.
SEC. 245. EXPORT ENHANCEMENT PROGRAM.
(a) IN GENERAL.—Effective October 1, 1995, section 301(e) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)) is amended
by striking paragraph (1) and inserting the following:
‘‘(1) IN GENERAL.—The Commodity Credit Corporation shall
make available to carry out the program established under
this section not more than—
‘‘(A) $350,000,000 for fiscal year 1996;
‘‘(B) $250,000,000 for fiscal year 1997;
H. R. 2854—82
‘‘(C) $500,000,000 for fiscal year 1998;
‘‘(D) $550,000,000 for fiscal year 1999;
‘‘(E) $579,000,000 for fiscal year 2000;
‘‘(F) $478,000,000 for fiscal year 2001; and
‘‘(G) $478,000,000 for fiscal year 2002.’’.
(b) PRIORITY FUNDING FOR INTERMEDIATE PRODUCTS.—Section
301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended
by adding at the end the following:
‘‘(h) PRIORITY FUNDING FOR INTERMEDIATE PRODUCTS.—
‘‘(1) IN GENERAL.—Effective beginning in fiscal year 1996,
and consistent, as determined by the Secretary, with the obliga-
tions and reduction commitments undertaken by the United
States under the Uruguay Round Agreements, the Secretary
may make available not more than $100,000,000 for each fiscal
year under this section for the sale of intermediate agricultural
products in sufficient quantities to attain the volume of export
sales consistent with the volume of intermediate agricultural
products exported by the United States during the Uruguay
Round base period years of 1986 through 1990.
‘‘(2) ADDITIONAL ASSISTANCE.—Notwithstanding paragraph
(1), if the export sale of any intermediate agricultural product
attains the volume of export sales consistent with the volume
of the intermediate agricultural product exported by the United
States during the Uruguay Round base period years of 1986
through 1990, the Secretary may make available additional
amounts under this section for the encouragement of export
sales of the intermediate agricultural product.’’.
SEC. 246. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C.
5661) is amended by striking subsection (a) and inserting the follow-
ing:
‘‘(a) ARRIVAL CERTIFICATION.—With respect to a commodity pro-
vided, or for which financing or a credit guarantee or other assist-
ance is made available, under a program authorized in section
201, 202, or 301, the Commodity Credit Corporation shall require
the exporter of the commodity to maintain records of an official
or customary commercial nature or other documents as the Sec-
retary may require, and shall allow representatives of the Commod-
ity Credit Corporation access to the records or documents as needed,
to verify the arrival of the commodity in the country that is the
intended destination of the commodity.’’.
SEC. 247. COMPLIANCE.
Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 248. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C.
5664) is repealed.
SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
Subtitle B of title IV of the Agricultural Trade Act of 1978
(7 U.S.C. 5671 et seq.) is amended by adding at the end the
following:
H. R. 2854—83
‘‘SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
‘‘(a) IN GENERAL.—Except as provided in subsection (f), notwith-
standing any other provision of law, if, after the date of enactment
of this section, the President or any other member of the executive
branch causes exports from the United States to any country to
be unilaterally suspended for reasons of national security or foreign
policy, and if within 90 days after the date on which the suspension
is imposed on United States exports no other country with an
agricultural economic interest agrees to participate in the suspen-
sion, the Secretary shall carry out a trade compensation assistance
program in accordance with this section (referred to in this section
as a ‘program’).
‘‘(b) COMPENSATION OR PROVISION OF FUNDS.—Under a pro-
gram, the Secretary shall, based on an evaluation by the Secretary
of the method most likely to produce the greatest compensatory
benefit for producers of the commodity involved in the suspension—
‘‘(1) compensate producers of the commodity by making
payments available to producers, as provided by subsection
(c)(1); or
‘‘(2) make available an amount of funds calculated under
subsection (c)(2), to promote agricultural exports or provide
agricultural commodities to developing countries under any
authorities available to the Secretary.
‘‘(c) DETERMINATION
OF
AMOUNT
OF
COMPENSATION
OR
FUNDS.—
‘‘(1) COMPENSATION.—If the Secretary makes payments
available to producers under subsection (b)(1), the amount of
the payment shall be determined by the Secretary based on
the Secretary’s estimate of the loss suffered by producers of
the commodity involved due to any decrease in the price of
the commodity as a result of the suspension.
‘‘(2) DETERMINATION OF AMOUNT OF FUNDS.—For each fiscal
year of a program, the amount of funds made available under
subsection (b)(2) shall be equal to 90 percent of the average
annual value of United States agricultural exports to the coun-
try with respect to which exports are suspended during the
most recent 3 years prior to the suspension for which data
are available.
‘‘(d) DURATION OF PROGRAM.—For each suspension of exports
for which a program is implemented under this section, funds
shall be made available under subsection (b) for each fiscal year
or part of a fiscal year for which the suspension is in effect,
but not to exceed 3 fiscal years.
‘‘(e) COMMODITY CREDIT CORPORATION.—The Secretary shall
use funds of the Commodity Credit Corporation to carry out this
section.
‘‘(f) EXCEPTION TO CARRYING OUT A PROGRAM.—This section
shall not apply to any suspension of trade due to a war or armed
hostility.
‘‘(g) PARTIAL YEAR EMBARGOES.—If the Secretary makes funds
available under subsection (b)(2), regardless of whether an embargo
is in effect for only part of a fiscal year, the full amount of funds
as calculated under subsection (c)(2) shall be made available under
a program for the fiscal year. If the Secretary determines that
making the required amount of funds available in a partial fiscal
year is impracticable, the Secretary may make all or part of the
funds required to be made available in the following fiscal year
H. R. 2854—84
(in addition to any funds otherwise required under a program
to be made available in the following fiscal year).
‘‘(h) SHORT SUPPLY EMBARGOES.—If the President or any other
member of the executive branch causes exports to be suspended
based on a determination of short supply, the Secretary shall carry
out section 1002 of the Food and Agriculture Act of 1977 (7 U.S.C.
1310).’’.
SEC. 250. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C.
5693) is amended to read as follows:
‘‘SEC. 503. DUTIES OF FOREIGN AGRICULTURAL SERVICE.
‘‘The Service shall assist the Secretary in carrying out the
agricultural trade policy and international cooperation policy of
the United States by—
‘‘(1) acquiring information pertaining to agricultural trade;
‘‘(2) carrying out market promotion and development activi-
ties;
‘‘(3) providing agricultural technical assistance and train-
ing; and
‘‘(4) carrying out the programs authorized under this Act,
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.), and other Acts.’’.
SEC. 251. REPORTS.
The first sentence of section 603 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5713) is amended by striking ‘‘The’’ and
inserting ‘‘Subject to section 217 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6917), the’’.
SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.)
is amended by adding at the end the following:
‘‘TITLE VII—FOREIGN MARKET DEVEL-
OPMENT COOPERATOR PROGRAM
‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.
‘‘In this title, the term ‘eligible trade organization’ means a
United States trade organization that—
‘‘(1) promotes the export of 1 or more United States agricul-
tural commodities or products; and
‘‘(2) does not have a business interest in or receive remu-
neration from specific sales of agricultural commodities or prod-
ucts.
‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
‘‘(a) IN
GENERAL.—The Secretary shall establish and, in
cooperation with eligible trade organizations, carry out a foreign
market development cooperator program to maintain and develop
foreign markets for United States agricultural commodities and
products.
‘‘(b) ADMINISTRATION.—Funds made available to carry out this
title shall be used only to provide—
‘‘(1) cost-share assistance to an eligible trade organization
under a contract or agreement with the organization; and
H. R. 2854—85
‘‘(2) assistance for other costs that are necessary or appro-
priate to carry out the foreign market development cooperator
program, including contingent liabilities that are not otherwise
funded.
‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out this
title such sums as may be necessary for each of fiscal years 1996
through 2002.’’.
Subtitle C—Miscellaneous Agricultural
Trade Provisions
SEC. 261. EDWARD R. MADIGAN UNITED STATES AGRICULTURAL
EXPORT EXCELLENCE AWARD.
(a) FINDINGS.—Congress finds that—
(1) United States producers of agricultural products are
some of the most productive and efficient producers of agricul-
tural products in the world;
(2) continued growth and expansion of markets for United
States agricultural exports is crucial to the continued develop-
ment and economic well-being of rural areas of the United
States and the agricultural sector of the United States economy;
(3) in recent years, United States agricultural exports have
steadily increased, surpassing $54,000,000,000 in value in 1995;
(4) as United States agricultural producers move toward
a market-oriented system in which planting and other decisions
by producers are driven by national and international market
signals, developing new and expanding agricultural export mar-
kets is vital to maintaining a vibrant and healthy agricultural
sector and rural economy; and
(5) a United States agricultural export excellence award
will increase United States agricultural exports by—
(A) identifying efforts of United States entities to
develop and expand markets for United States agricultural
exports through the development of new products and serv-
ices and through the use of innovative marketing tech-
niques;
(B) recognizing achievements of those who have exhib-
ited or supported entrepreneurial efforts to expand and
create new markets for United States agricultural exports
or increase the volume or value of United States agricul-
tural exports; and
(C) disseminating information on successful methods
used to develop and expand markets for United States
agricultural exports.
(b) ESTABLISHMENT.—There is established the Edward R. Mad-
igan United States Agricultural Export Excellence Award, which
shall be evidenced by a medal bearing the inscription ‘‘Edward
R. Madigan United States Agricultural Export Excellence Award’’.
The medal shall be of such design and materials and bear such
additional inscriptions as the Secretary of Agriculture (referred
to in this section as the ‘‘Secretary’’) may prescribe.
(c) SELECTION OF RECIPIENT.—The President or the Secretary
(on the basis of recommendations received from the board estab-
lished under subsection (h)) shall periodically provide the award
H. R. 2854—86
to companies and other entities that in the judgment of the Presi-
dent or the Secretary substantially encourage entrepreneurial
efforts in the food and agriculture sector for advancing United
States agricultural exports.
(d) PRESENTATION OF AWARD.—The presentation of the award
shall be made by the President or the Secretary with such cere-
monies as the President or the Secretary considers proper.
(e) PUBLICATION
OF AWARD.—An entity to which an award
is made under this section may publicize the receipt of the award
by the entity and use the award in advertising of the entity.
(f) CATEGORIES FOR WHICH AWARD MAY BE GIVEN.—Separate
awards shall be made to qualifying entities in each of the following
categories:
(1) Development of new products or services for agricultural
export markets.
(2) Development of new agricultural export markets.
(3) Creative marketing of products or services in agricul-
tural export markets.
(g) CRITERIA FOR QUALIFICATION.—An entity may qualify for
an award under this section only if the entity—
(1)(A) applies to the board established under subsection
(h) in writing for the award; or
(B) is recommended for the award by a Governor of a
State;
(2)(A) has exhibited significant entrepreneurial effort to
create new markets for United States agricultural exports or
increase United States agricultural exports; or
(B) has provided significant assistance to others in an
effort to create new markets for United States agricultural
exports or increase United States agricultural exports;
(3) has not received another award in the same category
under subsection (f) during the preceding 5-year period; and
(4) meets such other requirements and specifications as
the Secretary determines are appropriate to achieve the objec-
tives of this section.
(h) BOARD.—
(1) SELECTION.—The Secretary shall appoint a board of
evaluators, consisting of at least 5 individuals from the private
sector selected for their knowledge and experience in exporting
United States agricultural products.
(2) MEETINGS.—The board shall meet at least once annually
to review and evaluate all applicants and entities recommended
by States under subsection (g)(1).
(3) RECOMMENDATIONS OF BOARD.—The board shall report
its recommendations concerning the making of the award to
the Secretary.
(4) TERM.—Each member of the board may serve a term
of not to exceed 3 years.
(i) FUNDING.—The Secretary may seek and accept gifts from
public and private sources to carry out this section.
SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C.
509) is repealed.
H. R. 2854—87
SEC. 263. TRIGGERED EXPORT ENHANCEMENT.
(a) READJUSTMENT OF SUPPORT LEVELS.—Section 1302 of the
Omnibus Budget Reconciliation Act of 1990 (Public Law 101–508;
7 U.S.C. 1421 note) is repealed.
(b) TRIGGERED MARKETING LOANS
AND EXPORT ENHANCE-
MENT.—Section 4301 of the Omnibus Trade and Competitiveness
Act of 1988 (Public Law 100–418; 7 U.S.C. 1446 note) is repealed.
(c) EFFECTIVE DATE.—The amendments made by this section
shall be effective beginning with the 1996 crops of wheat, feed
grains, upland cotton, and rice.
SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431)
is amended—
(1) in subsection (b)—
(A) in paragraph (7)—
(i) in subparagraph (D)(iv), by striking ‘‘one year
of acquisition’’ and all that follows through the period
at the end and inserting the following: ‘‘a reasonable
length of time, as determined by the Secretary, except
that the Secretary may permit the use of proceeds
in a country other than the country of origin—
‘‘(I) as necessary to expedite the transportation of
commodities and products furnished under this subsection;
or
‘‘(II) if the proceeds are generated in a currency gen-
erally accepted in the other country.’’; and
(ii) by striking the sentence following subpara-
graph (F) and inserting the following: ‘‘The Secretary
may approve the use of proceeds or services realized
from the sale or barter of a commodity furnished under
this subsection by a nonprofit voluntary agency,
cooperative, or intergovernmental agency or organiza-
tion to meet administrative expenses incurred in
connection with activities undertaken under this sub-
section.’’;
(B) in paragraph (8), by striking subparagraph (C);
and
(C) by striking paragraphs (10), (11), and (12); and
(2) by striking subsection (c).
SEC. 265. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) IN GENERAL.—Section 1517 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
(b) TECHNICAL AMENDMENT.—Subsection (e)(3) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking
‘‘section 106’’ and inserting ‘‘section 103’’.
SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.
Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736m) is repealed.
SEC. 267. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT
MARKETS.
Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p)
is amended—
(1) by striking subsection (a); and
(2) in subsection (b)—
H. R. 2854—88
(A) by striking ‘‘(b)’’; and
(B) by striking paragraphs (1) through (4) and inserting
the following:
‘‘(1) be the premier supplier of agricultural and food prod-
ucts to world markets and expand exports of high value prod-
ucts;
‘‘(2) support the principle of free trade and the promotion
of fair trade in agricultural commodities and products;
‘‘(3) cooperate fully in all efforts to negotiate with foreign
countries further reductions in tariff and nontariff barriers
to trade, including sanitary and phytosanitary measures and
trade-distorting subsidies;
‘‘(4) aggressively counter unfair foreign trade practices as
a means of encouraging fairer trade;’’.
SEC. 268. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q)
is repealed.
SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r)
is amended to read as follows:
‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) on a level playing field, United States producers are
the most competitive suppliers of agricultural products in the
world;
‘‘(2) exports of United States agricultural products
accounted for $54,000,000,000 in 1995, contributing a net
$24,000,000,000 to the merchandise trade balance of the United
States and supporting approximately 1,000,000 jobs;
‘‘(3) increased agricultural exports are critical to the future
of the farm, rural, and overall United States economy, but
the opportunities for increased agricultural exports are limited
by the unfair subsidies of the competitors of the United States,
and a variety of tariff and nontariff barriers to highly competi-
tive United States agricultural products;
‘‘(4) international negotiations can play a key role in break-
ing down barriers to United States agricultural exports;
‘‘(5) the Uruguay Round Agreement on Agriculture made
significant progress in the attainment of increased market
access opportunities for United States exports of agricultural
products, for the first time—
‘‘(A) restraining foreign trade-distorting domestic sup-
port and export subsidy programs; and
‘‘(B) developing common rules for the application of
sanitary and phytosanitary restrictions;
that should result in increased exports of United States agricul-
tural products, jobs, and income growth in the United States;
‘‘(6) the Uruguay Round Agreement on Agriculture did
not succeed in completely eliminating trade distorting domestic
support and export subsidies by—
‘‘(A) allowing the European Union to continue
unreasonable levels of spending on export subsidies; and
‘‘(B) failing to discipline monopolistic state trading enti-
ties, such as the Canadian Wheat Board, that use
H. R. 2854—89
nontransparent and discriminatory pricing as a hidden de
facto export subsidy;
‘‘(7) during the period 1996 through 2002, there will be
several opportunities for the United States to negotiate fairer
trade in agricultural products, including further negotiations
under the World Trade Organization, and steps toward possible
free trade agreements of the Americas and Asian-Pacific Eco-
nomic Cooperation (APEC); and
‘‘(8) the United States should aggressively use these
opportunities to achieve more open and fair opportunities for
trade in agricultural products.
‘‘(b) GOALS OF THE UNITED STATES IN AGRICULTURAL TRADE
NEGOTIATIONS.—The objectives of the United States with respect
to future negotiations on agricultural trade include—
‘‘(1) increasing opportunities for United States exports of
agricultural products by eliminating tariff and nontariff bar-
riers to trade;
‘‘(2) leveling the playing field for United States producers
of agricultural products by limiting per unit domestic produc-
tion supports to levels that are no greater than those available
in the United States;
‘‘(3) ending the practice of export dumping by eliminating
all trade distorting export subsidies and disciplining state trad-
ing entities so that they do not (except in cases of bona fide
food aid) sell in foreign markets at prices below domestic market
prices or prices below their full costs of acquiring and delivering
agricultural products to the foreign markets; and
‘‘(4) encouraging government policies that avoid price-
depressing surpluses.’’.
SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public Law
99–198; 99 Stat. 1499) is repealed.
SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.
(a) IN GENERAL.—The Agricultural Aid and Trade Missions
Act (7 U.S.C. 1736bb et seq.) is repealed.
(b) CONFORMING AMENDMENT.—Section 7 of Public Law 100–
277 (7 U.S.C. 1736bb note) is repealed.
SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C.
1748(b)(1)(B)) is amended by striking ‘‘including fruits, vegetables,
legumes, popcorn and ducks’’.
SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.
Section 1545 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 7 U.S.C. 1761 note) is repealed.
SEC. 274. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C.
1851 and 1857) are repealed.
SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852)
is repealed.
H. R. 2854—90
SEC. 276. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging Eurasian
Democracies and Open Markets Support Act of 1992 (Public Law
102–511; 7 U.S.C. 5621 note) is amended by striking subsection
(d).
SEC. 277. EMERGING MARKETS.
(a) PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MAR-
KETS.—
(1) EMERGING MARKETS.—Section 1542 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (Public Law 101–
624; 7 U.S.C. 5622 note) is amended—
(A) in the section heading, by striking ‘‘EMERGING
DEMOCRACIES’’ and inserting ‘‘EMERGING MARKETS’’;
(B) by striking ‘‘emerging democracies’’ each place it
appears in subsections (b), (d), and (e) and inserting
‘‘emerging markets’’;
(C) in subsection (c), by striking ‘‘emerging democracy’’
each place it appears and inserting ‘‘emerging market’’;
and
(D) by striking subsection (f) and inserting the follow-
ing:
‘‘(f) EMERGING MARKET.—In this section and section 1543, the
term ‘emerging market’ means any country that the Secretary deter-
mines—
‘‘(1) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors of the
economy of the country; and
‘‘(2) has the potential to provide a viable and significant
market for United States agricultural commodities or products
of United States agricultural commodities.’’.
(2) FUNDING.—Section 1542 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 is amended by striking sub-
section (a) and inserting the following:
‘‘(a) FUNDING.—The Commodity Credit Corporation shall make
available for fiscal years 1996 through 2002 not less than
$1,000,000,000 of direct credits or export credit guarantees for
exports to emerging markets under section 201 or 202 of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition
to the amounts acquired or authorized under section 211 of the
Act (7 U.S.C. 5641) for the program.’’.
(3) AGRICULTURAL FELLOWSHIP PROGRAM.—Section 1542 of
the Food, Agriculture, Conservation, and Trade Act of 1990
is amended—
(A) in subsection (b), by striking the last sentence
and inserting the following: ‘‘The Commodity Credit Cor-
poration shall give priority under this subsection to—
‘‘(A) projects that encourage the privatization of the agricul-
tural sector or that benefit private farms or cooperatives in
emerging markets; and
‘‘(B) projects for which nongovernmental persons agree to
assume a relatively larger share of the costs.’’; and
(B) in subsection (d)—
(i) in the matter preceding paragraph (1), by strik-
ing ‘‘the Soviet Union’’ and inserting ‘‘emerging mar-
kets’’;
(ii) in paragraph (1)—
H. R. 2854—91
(I) in subparagraph (A)(i)—
(aa) by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(bb) by striking ‘‘those systems, and iden-
tify’’ and inserting ‘‘the systems, including
potential reductions in trade barriers, and
identify and carry out’’;
(II) in subparagraph (B), by striking ‘‘shall’’
and inserting ‘‘may’’;
(III) 
in 
subparagraph 
(D), 
by 
inserting
‘‘(including the establishment of extension serv-
ices)’’ after ‘‘technical assistance’’;
(IV) by striking subparagraph (F); and
(V) by redesignating subparagraphs (G), (H),
and (I) as subparagraphs (F), (G), and (H), respec-
tively;
(iii) in paragraph (2)—
(I) by striking ‘‘the Soviet Union’’ each place
it appears and inserting ‘‘emerging markets’’;
(II) in subparagraph (A), by striking ‘‘a free
market food production and distribution system’’
and inserting ‘‘free market food production and
distribution systems’’;
(III) in subparagraph (B)—
(aa) in clause (i), by striking ‘‘Govern-
ment’’ and inserting ‘‘governments’’;
(bb) in clause (iii)(II), by striking ‘‘and’’
at the end;
(cc) in clause (iii)(III), by striking the
period at the end and inserting ‘‘; and’’; and
(dd) by adding at the end of clause (iii)
the following:
‘‘(IV) to provide for the exchange of administra-
tors and faculty members from agricultural and
other institutions to strengthen and revise edu-
cational programs in agricultural economics, agri-
business, and agrarian law, to support change
towards a free market economy in emerging mar-
kets.’’;
(IV) by striking subparagraph (D); and
(V) by redesignating subparagraph (E) as
subparagraph (D); and
(iv) by striking paragraph (3).
(4) UNITED
STATES
AGRICULTURAL
COMMODITY.—Sub-
sections (b) and (c) of section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 are amended by striking
‘‘section 101(6)’’ each place it appears and inserting ‘‘section
102(7)’’.
(5) REPORT.—The first sentence of section 1542(e)(2) of
the Food, Agriculture, Conservation, and Trade Act of 1990
is amended by striking ‘‘Not’’ and inserting ‘‘Subject to section
217 of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6917), not’’.
(b) AGRICULTURAL FELLOWSHIP PROGRAM FOR MIDDLE INCOME
COUNTRIES, EMERGING DEMOCRACIES, AND EMERGING MARKETS.—
Section 1543 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3293) is amended—
H. R. 2854—92
(1) in the section heading, by striking ‘‘MIDDLE INCOME
COUNTRIES AND EMERGING DEMOCRACIES’’ and inserting ‘‘MID-
DLE
INCOME
COUNTRIES, 
EMERGING
DEMOCRACIES, 
AND
EMERGING MARKETS’’;
(2) in subsection (b), by adding at the end the following:
‘‘(5) EMERGING MARKET.—Any emerging market, as defined
in section 1542(f).’’; and
(3) in subsection (c)(1), by striking ‘‘food needs’’ and insert-
ing ‘‘food and fiber needs’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737) is amended—
(A) in subsection (a), by striking ‘‘emerging democ-
racies’’ and inserting ‘‘emerging markets’’; and
(B) in subsection (b), by striking paragraph (1) and
inserting the following:
‘‘(1) EMERGING
MARKET.—The term ‘emerging market’
means any country that the Secretary determines—
‘‘(A) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors
of the economy of the country; and
‘‘(B) has the potential to provide a viable and signifi-
cant market for United States agricultural commodities
or products of United States agricultural commodities.’’.
(2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking
‘‘emerging democracies’’ and inserting ‘‘emerging markets’’.
(3) Section 202(d)(3)(B) of the Agricultural Trade Act of
1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ‘‘emerging
democracies’’ and inserting ‘‘emerging markets’’.
SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.
Section 1542(d)(1)(D) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note)
is amended by adding at the end the following: ‘‘Notwithstanding
any other provision of law, the assistance shall include assistance
for administrative and overhead expenses of the International
Cooperation and Development Program Area of the Foreign Agri-
culture Service, to the extent that the expenses were incurred
pursuant to reimbursable agreements entered into prior to Septem-
ber 30, 1993, the expenses do not exceed $2,000,000 per year,
and the expenses are not incurred for information technology sys-
tems.’’.
SEC. 279. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUT-
TON.
Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607)
is amended by adding at the end the following:
‘‘(f) LAMB AND MUTTON.—The Secretary, consistent with United
States international obligations, shall establish standards for the
labeling of sheep carcasses, parts of sheep carcasses, sheepmeat,
and sheepmeat food products.’’.
SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND
THE PHILIPPINES.
Section 583 of Public Law 100–202 (101 Stat. 1329–182) is
repealed.
H. R. 2854—93
SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) IN GENERAL.—Sections 1551 through 1555, section 1558,
and section 1559 of subtitle E of title XV of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101–624; 104
Stat. 3696) (as redesignated by section 1011(d) of the Federal
Reports Elimination and Sunset Act of 1995 (Public Law 104–
66; 109 Stat. 709)) are repealed.
(b) LANGUAGE PROFICIENCY.—Section 1556 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (Public Law 101–
624; 7 U.S.C. 5694 note) is amended by striking subsection (c).
SEC. 282. SENSE OF CONGRESS CONCERNING MULTILATERAL DIS-
CIPLINES ON CREDIT GUARANTEES.
It is the sense of Congress that—
(1) in negotiations to establish multilateral disciplines on
agricultural export credits and credit guarantees, the United
States should not agree to any arrangement that is incompat-
ible with the provisions of United States law that authorize
agricultural export credits and credit guarantees;
(2) in the negotiations (which are held under the auspices
of the Organization for Economic Cooperation and Develop-
ment), the United States should not reach any agreement that
fails to impose disciplines on the practices of foreign government
trading entities such as the Australian Wheat Board, the
Canadian Wheat Board, the New Zealand Dairy Board, and
the Australian Dairy Board; and
(3) the disciplines should include greater openness in the
operations of the entities as long as the entities are subsidized
by the foreign government or have monopolies for exports of
a commodity that are sanctioned by the foreign government.
SEC. 283. INTERNATIONAL COTTON ADVISORY COMMITTEE.
(a) IN GENERAL.—The President shall ensure that the Govern-
ment of the United States participates as a full member of the
International Cotton Advisory Committee.
(b) REPRESENTATION
BY
THE SECRETARY.—The Secretary of
Agriculture shall represent the Government of the United States
as a member of the International Cotton Advisory Committee and
shall delegate the primary responsibility to represent the Govern-
ment of the United States to appropriately qualified individuals.
TITLE III—CONSERVATION
Subtitle A—Definitions
SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND
CONSERVATION.
(a) CONSERVATION PLAN AND CONSERVATION SYSTEM.—Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is
amended—
(1) by redesignating paragraphs (2) through (16) as para-
graphs (4) through (18), respectively; and
(2) by inserting after paragraph (1) the following:
‘‘(2) CONSERVATION
PLAN.—The term ‘conservation plan’
means the document that—
‘‘(A) applies to highly erodible cropland;
H. R. 2854—94
‘‘(B) describes the conservation system applicable to
the highly erodible cropland and describes the decisions
of the person with respect to location, land use, tillage
systems, and conservation treatment measures and sched-
ule; and
‘‘(C) is approved by the local soil conservation district,
in consultation with the local committees established under
section 8(b)(5) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(b)(5)) and the Secretary, or by
the Secretary.
‘‘(3) CONSERVATION SYSTEM.—The term ‘conservation sys-
tem’ means a combination of 1 or more conservation measures
or management practices that—
‘‘(A) are based on local resource conditions, available
conservation technology, and the standards and guidelines
contained in the Natural Resources Conservation Service
field office technical guides; and
‘‘(B) are designed to achieve, in a cost effective and
technically practicable manner, a substantial reduction in
soil erosion or a substantial improvement in soil conditions
on a field or group of fields containing highly erodible
cropland when compared to the level of erosion or soil
conditions that existed before the application of the con-
servation measures and management practices.’’.
(b) FIELD.—Section 1201(a) of the Food Security Act of 1985
is amended by striking paragraph (7) (as redesignated by subsection
(a)(1)) and inserting the following:
‘‘(7) FIELD.—The term ‘field’ means a part of a farm that
is separated from the balance of the farm by permanent bound-
aries such as fences, roads, permanent waterways, or other
similar features. At the option of the owner or operator of
the farm, croplines may also be used to delineate a field if
farming practices make it probable that the croplines are not
subject to change. Any highly erodible land on which an agricul-
tural commodity is produced after December 23, 1985, and
that is not exempt under section 1212, shall be considered
as part of the field in which the land was included on December
23, 1985, unless the owner and Secretary agree to modification
of the boundaries of the field to carry out this title.’’.
(c) HIGHLY ERODIBLE LAND.—Section 1201(a)(9) of the Food
Security Act of 1985 (as redesignated by subsection (a)(1)) is amend-
ed by adding at the end the following:
‘‘(C) EQUATIONS.—Not later than 60 days after the
date of enactment of this subparagraph, the Secretary shall
publish in the Federal Register the universal soil loss equa-
tion and wind erosion equation used by the Department
of Agriculture as of that date. The Secretary may not
change the equations after that date except following notice
and comment in a manner consistent with section 553
of title 5, United States Code.’’.
(d) CONFORMING AMENDMENTS.—Section 1212 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3812) is amended—
(1) in the first sentence of subsection (a)(2), by striking
‘‘that documents’’ and all that follows through ‘‘by the Sec-
retary’’;
H. R. 2854—95
(2) in subsection (c)(3), by striking ‘‘based on’’ and all
that follows through ‘‘and the Secretary,’’ and inserting ‘‘, in
which case,’’;
(3) in subsection (e)(1)(A), by striking ‘‘conservation compli-
ance plan’’ and inserting ‘‘conservation plan’’; and
(4) in subsection (f)—
(A) in paragraph (1), by striking ‘‘that documents’’ and
all that follows through ‘‘under subsection (a)’’;
(B) in paragraph (3), by striking ‘‘prepared under sub-
section (a)’’; and
(C) in paragraph (4), by striking ‘‘that documents’’ and
all that follows through ‘‘subsection (a)’’.
Subtitle B—Highly Erodible Land
Conservation
SEC. 311. PROGRAM INELIGIBILITY.
Effective 90 days after the date of enactment of this Act,
section 1211 of the Food Security Act of 1985 (16 U.S.C. 3811)
is amended—
(1) in the matter preceding paragraph (1), by striking ‘‘fol-
lowing the date of enactment of this Act,’’;
(2) in paragraph (1)—
(A) by striking subparagraph (A) and inserting the
following:
‘‘(A) contract payments under a production flexibility
contract, marketing assistance loans, and any type of price
support or payment made available under the Agricultural
Market Transition Act, the Commodity Credit Corporation
Charter Act (15 U.S.C. 714 et seq.), or any other Act;’’;
(B) by striking subparagraph (C);
(C) in subparagraph (D), by striking ‘‘made under’’
and all that follows through ‘‘August 14, 1989’’;
(D) in subparagraph (E), by striking ‘‘Farmers Home
Administration’’ and inserting ‘‘Consolidated Farm Service
Agency’’; and
(E) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(3) by striking paragraph (3) and inserting the following:
‘‘(3) during the crop year—
‘‘(A) a payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D;
‘‘(B) a payment under any other provision of subtitle
D;
‘‘(C) a payment under section 401 or 402 of the Agricul-
tural Credit Act of 1978 (16 U.S.C. 2201 and 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).’’.
SEC. 312. CONSERVATION RESERVE LANDS.
Section 1212(a)(3) of the Food Security Act of 1985 (16 U.S.C.
3812(a)(3)) is amended by striking ‘‘shall, if the conservation plan
established under this subtitle for such land requires structures
to be constructed,’’ and inserting ‘‘shall only be required to apply
H. R. 2854—96
a conservation plan established under this subtitle. The person
shall not be required to meet a higher conservation standard than
the standard applied to other highly erodible cropland located
within the same area. If the person’s conservation plan requires
structures to be constructed, the person shall’’.
SEC. 313. GOOD FAITH EXEMPTION.
(a) GRACE PERIOD TO RESUME CONSERVATION COMPLIANCE.—
Section 1212(f)(1) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(1)) is amended—
(1) by striking ‘‘Except to the extent provided in paragraph
(2), no’’ and inserting ‘‘No’’; and
(2) by striking ‘‘such person has—’’ and all that follows
through the period at the end of subparagraph (B) and inserting
the following: ‘‘the person has acted in good faith and without
an intent to violate this subtitle. A person who meets the
requirements of this paragraph shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying
the person’s conservation plan.’’.
(b) SPECIAL PENALTIES REGARDING CERTAIN HIGHLY ERODIBLE
CROPLAND.—Section 1212(f)(2) of the Food Security Act of 1985
(16 U.S.C. 3812(f)(2)) is amended by striking ‘‘meets the require-
ments of paragraph (1)’’ and inserting ‘‘with respect to highly erod-
ible cropland that was not in production prior to December 23,
1985, and has acted in good faith and without an intent to violate
the provisions’’.
(c) CONFORMING AMENDMENT.—Section 1212(f)(4) of the Food
Security Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by striking
the last sentence.
SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM
CONSERVATION PLANS.
Section 1212(f) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(4)) is amended—
(1) in paragraph (4)(C), by striking ‘‘problem’’ and inserting
‘‘problem, including weather, pest, and disease problems’’; and
(2) by adding at the end the following:
‘‘(5) EXPEDITED PROCEDURES FOR TEMPORARY VARIANCES.—
After consultation with local conservation districts, the Sec-
retary shall establish expedited procedures for the consideration
and granting of temporary variances under paragraph (4)(C).
If the request for a temporary variance under paragraph (4)(C)
involves the use of practices or measures to address weather,
pest, or disease problems, the Secretary shall make a decision
on whether to grant the variance during the 30-day period
beginning on the date of receipt of the request. If the Secretary
fails to render a decision during the period, the temporary
variance shall be considered granted.’’.
SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION
PLANS AND CONSERVATION SYSTEMS.
(a) DEVELOPMENT AND IMPLEMENTATION.—The Food Security
Act of 1985 is amended—
(1) by redesignating section 1213 (16 U.S.C. 3813) as sec-
tion 1214; and
H. R. 2854—97
(2) by inserting after section 1212 (16 U.S.C. 3812) the
following:
‘‘SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION
PLANS AND CONSERVATION SYSTEMS.
‘‘(a) TECHNICAL REQUIREMENTS.—In connection with the stand-
ards and guidelines contained in Natural Resources Conservation
Service field office technical guides applicable to the development
and use of conservation measures and management practices as
part of a conservation system, the Secretary shall ensure that
the standards and guidelines permit a person to use a conservation
system that—
‘‘(1) is technically and economically feasible;
‘‘(2) is based on local resource conditions and available
conservation technology;
‘‘(3) is cost-effective; and
‘‘(4) does not cause undue economic hardship on the person
applying the conservation system under the person’s conserva-
tion plan.
‘‘(b) MEASUREMENT OF EROSION REDUCTION.—For the purpose
of determining whether there is a substantial reduction in soil
erosion on a field containing highly erodible cropland, the measure-
ment of erosion reduction achieved by the application of a conserva-
tion system under a person’s conservation plan shall be based
on the estimated annual level of erosion at the time of the measure-
ment compared to the estimated annual level of erosion that existed
before the implementation of the conservation measures and
management practices provided for in the conservation system.
‘‘(c) RESIDUE MEASUREMENT.—
‘‘(1) RESPONSIBILITIES OF THE SECRETARY.—For the purpose
of measuring the level of residue on a field, the Secretary
shall—
‘‘(A) take into account any residue incorporated into
the top 2 inches of soil, as well as the growing crop,
in the measurement;
‘‘(B) provide technical guidelines for acceptable residue
measurement methods;
‘‘(C) provide a certification system for third parties
to perform residue measurements; and
‘‘(D) provide for the acceptance and use of information
and data voluntarily provided by the producer regarding
the field.
‘‘(2) ACCEPTANCE OF PRODUCER MEASUREMENTS.—Annual
residue measurements supplied by a producer (including
measurements performed by a certified third party) shall be
used by the Secretary if the Secretary determines that the
measurements indicate that the residue level for the field meets
the level required under the conservation plan.
‘‘(d) CERTIFICATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—For the purpose of determining the eligi-
bility of a person for program benefits specified in section
1211 at the time application is made for the benefits, the
Secretary shall permit the person to certify that the person
is complying with the person’s conservation plan.
‘‘(2) STATUS REVIEWS.—If a person makes a certification
under paragraph (1), the Secretary shall not be required to
carry out a review of the status of compliance of the person
H. R. 2854—98
with the conservation plan under which the conservation sys-
tem is being applied.
‘‘(3) REVISIONS AND MODIFICATIONS.—The Secretary shall
permit a person who makes a certification under paragraph
(1) with respect to a conservation plan to revise the conservation
plan in any manner, if the same level of conservation treatment
provided for by the conservation system under the person’s
conservation plan is maintained. The Secretary may not revise
the person’s conservation plan without the concurrence of the
person.
‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall, using avail-
able resources and consistent with the Secretary’s other conserva-
tion responsibilities and objectives, provide technical assistance to
a person throughout the development, revision, and application
of the conservation plan and any conservation system of the person.
At the request of the person, the Secretary may provide technical
assistance regarding conservation measures and management prac-
tices for other lands of the person that do not contain highly
erodible cropland.
‘‘(f) ENCOURAGEMENT OF ON-FARM RESEARCH.—To encourage
on-farm conservation research, the Secretary may allow a person
to include in the person’s conservation plan or a conservation system
under the plan, on a field trial basis, practices that are not currently
approved but that the Secretary considers have a reasonable likeli-
hood of success.’’.
(b) TREATMENT
OF
TECHNICAL
DETERMINATIONS.—Section
226(d)(2) of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6932(d)(2)) is amended—
(1) by striking ‘‘DETERMINATION.—With’’ and inserting
‘‘DETERMINATION.—
‘‘(A) IN GENERAL.—With’’; and
(2) by adding at the end the following:
‘‘(B) ECONOMIC
HARDSHIP.—After a technical deter-
mination has been made, on a producer’s request, if a
county or area committee determines that the application
of the producer’s conservation system would impose an
undue economic hardship on the producer, the committee
shall provide the producer with relief to avoid the hard-
ship.’’.
SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.
Subtitle B of title XII of the Food Security Act of 1985 (as
amended by section 315(a)(1)) is amended by adding at the end
the following:
‘‘SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE COMPLIANCE
DEFICIENCIES.
‘‘(a) IN GENERAL.—An employee of the Department of Agri-
culture who observes a possible compliance deficiency or other
potential violation of a conservation plan or this subtitle while
providing on-site technical assistance shall provide to the respon-
sible persons, not later than 45 days after observing the possible
violation, information regarding actions needed to comply with the
plan and this subtitle. The employee shall provide the information
in lieu of reporting the observation as a compliance violation.
‘‘(b) CORRECTIVE
ACTION.—The responsible persons shall
attempt to correct the deficiencies as soon as practicable after
receiving the information.
H. R. 2854—99
‘‘(c) REVIEW.—If the corrective action is not fully implemented
not later than 1 year after the responsible persons receive the
information, the Secretary may conduct a review of the status
of compliance of the persons with the conservation plan and this
subtitle.’’.
SEC. 317. WIND EROSION ESTIMATION PILOT PROJECT.
(a) IN GENERAL.—The Secretary of Agriculture shall conduct
a pilot project to review, and modify as appropriate, the use of
wind erosion factors under the highly erodible conservation require-
ments of subtitle B of title XII of the Food Security Act of 1985
(16 U.S.C. 3811 et seq.).
(b) SELECTION OF COUNTIES AND PRODUCERS.—The pilot project
shall be conducted for producers in those counties that—
(1) have approximately 100 percent of their cropland deter-
mined to be highly erodible under title XII of the Act;
(2) have a reasonable likelihood that the use of wind erosion
factors under title XII of the Act have resulted in an inequitable
application of the highly erodible land requirements of title
XII of the Act; and
(3) if the use of the land classification system under section
1201(a)(9)(A) of the Act (as redesignated by section 301(a)(1))
may result in a more accurate delineation of the cropland.
(c) ERRORS IN DELINEATION.—If the Secretary determines that
a significant error has occurred in delineating cropland under the
pilot project, the Secretary shall, at the request of the owners
or operators of the cropland, conduct a new delineation of the
cropland using the most accurate available delineation process,
as determined by the Secretary.
Subtitle C—Wetland Conservation
SEC. 321. PROGRAM INELIGIBILITY.
(a) PROGRAM INELIGIBILITY.—Section 1221 of the Food Security
Act of 1985 (16 U.S.C. 3821) is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) by striking the section heading and all that follows
through the end of subsection (a) and inserting the following:
‘‘SEC. 1221. PROGRAM INELIGIBILITY.
‘‘(a) PRODUCTION
ON CONVERTED WETLAND.—Except as pro-
vided in this subtitle and notwithstanding any other provision
of law, any person who in any crop year produces an agricultural
commodity on converted wetland, as determined by the Secretary,
shall be—
‘‘(1) in violation of this section; and
‘‘(2) ineligible for loans or payments in an amount deter-
mined by the Secretary to be proportionate to the severity
of the violation.
‘‘(b) INELIGIBILITY FOR CERTAIN LOANS AND PAYMENTS.—If a
person is determined to have committed a violation under subsection
(a) during a crop year, the Secretary shall determine which of,
and the amount of, the following loans and payments for which
the person shall be ineligible:
‘‘(1) Contract payments under a production flexibility con-
tract, marketing assistance loans, and any type of price support
or payment made available under the Agricultural Market
H. R. 2854—100
Transition Act, the Commodity Credit Corporation Charter Act
(15 U.S.C. 714 et seq.), or any other Act.
‘‘(2) A loan made or guaranteed under the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) or
any other provision of law administered by the Consolidated
Farm Service Agency, if the Secretary determines that the
proceeds of the loan will be used for a purpose that will contrib-
ute to conversion of a wetland (other than as provided in
this subtitle) to produce an agricultural commodity.
‘‘(3) During the crop year:
‘‘(A) A payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D.
‘‘(B) A payment under any other provision of subtitle
D.
‘‘(C) A payment under section 401 or 402 of the Agricul-
tural Credit Act of 1978 (16 U.S.C. 2201 and 2202).
‘‘(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).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1221(c) of the Food Security Act of 1985 (as
redesignated by subsection (a)(1)) is amended—
(A) by striking ‘‘Except’’ and inserting ‘‘WETLAND
CONVERSION.—Except’’;
(B) by striking ‘‘subsequent to the date of enactment
of the Food, Agriculture, Conservation, and Trade Act of
1990’’ and inserting ‘‘beginning after November 28, 1990,’’;
and
(C) by striking ‘‘subsections (a) (1) through (3)’’ and
inserting ‘‘subsection (b)’’.
(2) Section 1221 of the Food Security Act of 1985 (as
amended by subsection (a)) is amended by adding at the end
the following:
‘‘(d) PRIOR LOANS.—This section shall not apply to a loan
described in subsection (b) made before December 23, 1985.’’.
SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM
INELIGIBILITY.
(a) DELINEATION OF WETLANDS.—Section 1222 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3822) is amended by striking subsection
(a) and inserting the following:
‘‘(a) DELINEATION BY THE SECRETARY.—
‘‘(1) IN GENERAL.—Subject to subsection (b) and paragraph
(6), the Secretary shall delineate, determine, and certify all
wetlands located on subject land on a farm.
‘‘(2) WETLAND
DELINEATION
MAPS.—The Secretary shall
delineate wetlands on wetland delineation maps. On the request
of a person, the Secretary shall make a reasonable effort to
make an on-site wetland determination prior to delineation.
‘‘(3) CERTIFICATION.—On providing notice to affected per-
sons, the Secretary shall—
‘‘(A) certify whether a map is sufficient for the purpose
of making a determination of ineligibility for program bene-
fits under section 1221; and
‘‘(B) provide an opportunity to appeal the certification
prior to the certification becoming final.
H. R. 2854—101
‘‘(4) DURATION
OF
CERTIFICATION.—A final certification
made under paragraph (3) shall remain valid and in effect
as long as the area is devoted to an agricultural use or until
such time as the person affected by the certification requests
review of the certification by the Secretary.
‘‘(5) REVIEW OF MAPPING ON APPEAL.—In the case of an
appeal of the Secretary’s certification, the Secretary shall
review and certify the accuracy of the mapping of all land
subject to the appeal to ensure that the subject land has been
accurately delineated. Prior to rendering a decision on the
appeal, the Secretary shall conduct an on-site inspection of
the subject land on a farm.
‘‘(6) RELIANCE ON PRIOR CERTIFIED DELINEATION.—No per-
son shall be adversely affected because of having taken an
action based on a previous certified wetland delineation by
the Secretary. The delineation shall not be subject to a subse-
quent wetland certification or delineation by the Secretary,
unless requested by the person under paragraph (4).’’.
(b) EXEMPTIONS.—Section 1222 of the Food Security Act of
1985 (16 U.S.C. 3822) is amended by striking subsection (b) and
inserting the following:
‘‘(b) EXEMPTIONS.—No person shall become ineligible under sec-
tion 1221 for program loans or payments under the following cir-
cumstances:
‘‘(1) As the result of the production of an agricultural
commodity on the following lands:
‘‘(A) A converted wetland if the conversion of the wet-
land was commenced before December 23, 1985.
‘‘(B) Land that is a nontidal drainage or irrigation
ditch excavated in upland.
‘‘(C) A wet area created by a water delivery system,
irrigation, irrigation system, or application of water for
irrigation.
‘‘(D) A wetland on which the owner or operator of
a farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that
is consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a natural
wetland characteristic.
‘‘(E) Land that is an artificial lake or pond created
by excavating or diking land (that is not a wetland) to
collect and retain water and that is used primarily for
livestock watering, fish production, irrigation, wildlife, fire
control, flood control, cranberry growing, or rice production,
or as a settling pond.
‘‘(F) A wetland that is temporarily or incidentally cre-
ated as a result of adjacent development activity.
‘‘(G) A converted wetland if the original conversion
of the wetland was commenced before December 23, 1985,
and the Secretary determines the wetland characteristics
returned after that date as a result of—
‘‘(i) the lack of maintenance of drainage, dikes,
levees, or similar structures;
‘‘(ii) a lack of management of the lands containing
the wetland; or
H. R. 2854—102
‘‘(iii) circumstances beyond the control of the per-
son.
‘‘(H) A converted wetland, if—
‘‘(i) the converted wetland was determined by the
Natural Resources Conservation Service to have been
manipulated for the production of an agricultural
commodity or forage prior to December 23, 1985, and
was returned to wetland conditions through a vol-
untary restoration, enhancement, or creation action
subsequent to that determination;
‘‘(ii) technical determinations regarding the prior
site conditions and the restoration, enhancement, or
creation action have been adequately documented by
the Natural Resources Conservation Service;
‘‘(iii) the proposed conversion action is approved
by the Natural Resources Conservation Service prior
to implementation; and
‘‘(iv) the extent of the proposed conversion is lim-
ited so that the conditions will be at least equivalent
to the wetland functions and values that existed prior
to implementation of the voluntary wetland restora-
tion, enhancement, or creation action.
‘‘(2) For the conversion of the following:
‘‘(A) An artificial lake or pond created by excavating
or diking land that is not a wetland to collect and retain
water and that is used primarily for livestock watering,
fish production, irrigation, wildlife, fire control, flood con-
trol, cranberry growing, rice production, or as a settling
pond.
‘‘(B) A wetland that is temporarily or incidentally cre-
ated as a result of adjacent development activity.
‘‘(C) A wetland on which the owner or operator of
a farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that
is consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a natural
wetland characteristic.
‘‘(D) A wetland previously identified as a converted
wetland (if the original conversion of the wetland was
commenced before December 23, 1985), but that the Sec-
retary determines returned to wetland status after that
date as a result of—
‘‘(i) the lack of maintenance of drainage, dikes,
levees, or similar structures;
‘‘(ii) a lack of management of the lands containing
the wetland; or
‘‘(iii) circumstances beyond the control of the per-
son.
‘‘(E) A wetland, if—
‘‘(i) the wetland was determined by the Natural
Resources Conservation Service to have been manipu-
lated for the production of an agricultural commodity
or forage prior to December 23, 1985, and was returned
to wetland conditions through a voluntary restoration,
enhancement, or creation action subsequent to that
determination;
H. R. 2854—103
‘‘(ii) technical determinations regarding the prior
site conditions and the restoration, enhancement, or
creation action have been adequately documented by
the Natural Resources Conservation Service;
‘‘(iii) the proposed conversion action is approved
by the Natural Resources Conservation Service prior
to implementation; and
‘‘(iv) the extent of the proposed conversion is lim-
ited so that the conditions will be at least equivalent
to the wetland functions and values that existed prior
to implementation of the voluntary wetland restora-
tion, enhancement, or creation action.’’.
(c) IDENTIFICATION OF MINIMAL EFFECT EXEMPTIONS.—Section
1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is amended
by striking subsection (d) and inserting the following:
‘‘(d) IDENTIFICATION
OF MINIMAL EFFECT EXEMPTIONS.—For
purposes of applying the minimal effect exemption under subsection
(f)(1), the Secretary shall identify by regulation categorical minimal
effect exemptions on a regional basis to assist persons in avoiding
a violation of the ineligibility provisions of section 1221. The Sec-
retary shall ensure that employees of the Department of Agriculture
who administer this subtitle receive appropriate training to properly
apply the minimal effect exemptions determined by the Secretary.’’.
(d) MINIMAL EFFECT
AND MITIGATION EXEMPTIONS.—Section
1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is amended
by striking subsection (f) and inserting the following:
‘‘(f) MINIMAL EFFECT; MITIGATION.—The Secretary shall exempt
a person from the ineligibility provisions of section 1221 for any
action associated with the production of an agricultural commodity
on a converted wetland, or the conversion of a wetland, if 1 or
more of the following conditions apply, as determined by the Sec-
retary:
‘‘(1) The action, individually and in connection with all
other similar actions authorized by the Secretary in the area,
will have a minimal effect on the functional hydrological and
biological value of the wetlands in the area, including the
value to waterfowl and wildlife.
‘‘(2) The wetland and the wetland values, acreage, and
functions are mitigated by the person through the restoration
of a converted wetland, the enhancement of an existing wetland,
or the creation of a new wetland, and the restoration, enhance-
ment, or creation is—
‘‘(A) in accordance with a wetland conservation plan;
‘‘(B) in advance of, or concurrent with, the action;
‘‘(C) not at the expense of the Federal Government;
‘‘(D) in the case of enhancement or restoration of wet-
lands, on not greater than a 1-for-1 acreage basis unless
more acreage is needed to provide equivalent functions
and values that will be lost as a result of the wetland
conversion to be mitigated;
‘‘(E) in the case of creation of wetlands, on greater
than a 1-for-1 acreage basis if more acreage is needed
to provide equivalent functions and values that will be
lost as a result of the wetland conversion that is mitigated;
‘‘(F) on lands in the same general area of the local
watershed as the converted wetland; and
H. R. 2854—104
‘‘(G) with respect to the restored, enhanced, or created
wetland, made subject to an easement that—
‘‘(i) is recorded on public land records;
‘‘(ii) remains in force for as long as the converted
wetland for which the restoration, enhancement, or
creation to be mitigated remains in agricultural use
or is not returned to its original wetland classification
with equivalent functions and values; and
‘‘(iii) prohibits making alterations to the restored,
enhanced, or created wetland that lower the wetland’s
functions and values.
‘‘(3) The wetland was converted after December 23, 1985,
but before November 28, 1990, and the wetland values, acreage,
and functions are mitigated by the producer through the
requirements of subparagraphs (A), (B), (C), (D), (F), and (G)
of paragraph (2).
‘‘(4) The action was authorized by a permit issued under
section 404 of the Federal Water Pollution Control Act (33
U.S.C. 1344) and the wetland values, acreage, and functions
of the converted wetland were adequately mitigated for the
purposes of this subtitle.’’.
(e) REFERENCES TO PRODUCER.—Section 1222(g) of the Food
Security Act of 1985 (16 U.S.C. 3822(g)) is amended by striking
‘‘producer’’ and inserting ‘‘person’’.
(f) GOOD FAITH EXEMPTION.—Section 1222 of the Food Security
Act of 1985 (16 U.S.C. 3822) is amended by striking subsection
(h) and inserting the following:
‘‘(h) GOOD FAITH EXEMPTION.—
‘‘(1) EXEMPTION DESCRIBED.—The Secretary may waive a
person’s ineligibility under section 1221 for program loans,
payments, and benefits as the result of the conversion of a
wetland subsequent to November 28, 1990, or the production
of an agricultural commodity on a converted wetland, if the
Secretary determines that the person has acted in good faith
and without intent to violate this subtitle.
‘‘(2) PERIOD FOR COMPLIANCE.—The Secretary shall provide
a person who the Secretary determines has acted in good faith
and without intent to violate this subtitle with a reasonable
period, but not to exceed 1 year, during which to implement
the measures and practices necessary to be considered to
actively restoring the subject wetland.’’.
(g) RESTORATION.—Section 1222(i) of the Food Security Act
of 1985 (16 U.S.C. 3822(i)) is amended by inserting before the
period at the end the following: ‘‘or has otherwise mitigated for
the loss of wetland values, as determined by the Secretary, through
the restoration, enhancement, or creation of wetland values in
the same general area of the local watershed as the converted
wetland’’.
(h) DETERMINATIONS.—Section 1222 of the Food Security Act
of 1985 (16 U.S.C. 3822) is amended by striking subsection (j)
and inserting the following:
‘‘(j) DETERMINATIONS; RESTORATION
AND MITIGATION PLANS;
MONITORING ACTIVITIES.—Technical determinations, the develop-
ment of restoration and mitigation plans, and monitoring activities
under this section shall be made by the National Resources Con-
servation Service.’’.
H. R. 2854—105
(i) MITIGATION BANKING.—Section 1222 of the Food Security
Act of 1985 (16 U.S.C. 3822) is amended by adding at the end
the following:
‘‘(k) MITIGATION BANKING PROGRAM.—Using authorities avail-
able to the Secretary, the Secretary may operate a pilot program
for mitigation banking of wetlands to assist persons to increase
the efficiency of agricultural operations while protecting wetland
functions and values. Subsection (f)(2)(C) shall not apply to this
subsection.’’.
SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.
Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823)
is repealed.
SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED
PERSONS.
The Food Security Act of 1985 (as amended by section 323)
is amended by inserting after section 1222 (16 U.S.C. 3822) the
following:
‘‘SEC. 1223. AFFILIATED PERSONS.
‘‘If a person is affected by a reduction in benefits under section
1221 and the affected person is affiliated with other persons for
the purpose of receiving the benefits, the benefits of each affiliated
person shall be reduced under section 1221 in proportion to the
interest held by the affiliated person.’’.
SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS
IN MEMORANDUM OF AGREEMENT.
(a) AGRICULTURAL LANDS.—For purposes of implementing the
memorandum of agreement entered into between the Department
of Agriculture, the Environmental Protection Agency, the Depart-
ment of the Interior, and the Department of the Army on January
6, 1994, relating to the delineation of wetlands, the term ‘‘agricul-
tural lands’’ shall include—
(1) native pasture, rangelands, and other lands used to
produce or support the production of livestock; and
(2) tree farms.
(b) WETLAND CONSERVATION.—Subsection (a) shall not apply
with respect to the delineation of wetlands under subtitle C of
title XII of the Food Security Act of 1985 (16 U.S.C. 3821 et
seq.) or to the enforcement of the subtitle.
(c) SUCCESSOR MEMORANDUM.—Subsection (a) shall apply to
any amendment to or successor of the memorandum of agreement
described in subsection (a).
SEC. 326. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall
become effective 90 days after the date of enactment of this Act.
Subtitle D—Environmental Conservation
Acreage Reserve Program
SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PRO-
GRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830)
is amended to read as follows:
H. R. 2854—106
‘‘SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE
PROGRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—During the 1996 through 2002 calendar
years, the Secretary shall establish an environmental conserva-
tion acreage reserve program (referred to in this section as
‘ECARP’) to be implemented through contracts and the acquisi-
tion of easements to assist owners and operators of farms
and ranches to conserve and enhance soil, water, and related
natural resources, including grazing land, wetland, and wildlife
habitat.
‘‘(2) MEANS.—The Secretary shall carry out the ECARP
by—
‘‘(A) providing for the long-term protection of environ-
mentally sensitive land; and
‘‘(B) providing technical and financial assistance to
farmers and ranchers to—
‘‘(i) improve the management and operation of the
farms and ranches; and
‘‘(ii) reconcile productivity and profitability with
protection and enhancement of the environment.
‘‘(3) PROGRAMS.—The ECARP shall consist of—
‘‘(A) the conservation reserve program established
under subchapter B;
‘‘(B) the wetlands reserve program established under
subchapter C; and
‘‘(C) the environmental quality incentives program
established under chapter 4.
‘‘(b) ADMINISTRATION.—
‘‘(1) IN GENERAL.—In carrying out the ECARP, the Sec-
retary shall enter into contracts with owners and operators
and acquire interests in land through easements from owners,
as provided in this chapter and chapter 4.
‘‘(2) PRIOR
ENROLLMENTS.—Acreage enrolled in the con-
servation reserve or wetlands reserve program prior to the
date of enactment of this paragraph shall be considered to
be placed into the ECARP.
‘‘(c) CONSERVATION PRIORITY AREAS.—
‘‘(1) DESIGNATION.—The Secretary may designate water-
sheds, multistate areas, or regions of special environmental
sensitivity as conservation priority areas that are eligible for
enhanced assistance under this chapter and chapter 4.
‘‘(2) ASSISTANCE.—The Secretary may designate areas as
conservation priority areas to assist, to the maximum extent
practicable, agricultural producers within the conservation
priority areas to comply with nonpoint source pollution require-
ments under the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.) and other Federal and State environmental laws
and to meet other conservation needs.
‘‘(3) PRODUCERS.—The Secretary may provide technical
assistance, cost-share payments, and incentive payments to
producers in a conservation priority area under this chapter
and chapter 4 based on—
‘‘(A) the significance of the soil, water, wildlife habitat,
and related natural resource problems in a watershed,
multistate area, or region; and
H. R. 2854—107
‘‘(B) the structural practices or land management prac-
tices that best address the problems, and that maximize
environmental benefits for each dollar expended, as deter-
mined by the Secretary.’’.
SEC. 332. CONSERVATION RESERVE PROGRAM.
(a) PROGRAM EXTENSIONS.—
(1) CONSERVATION RESERVE PROGRAM.—Section 1231 of the
Food Security Act of 1985 (16 U.S.C. 3831) is amended by
striking ‘‘1995’’ each place it appears and inserting ‘‘2002’’.
(2) DUTIES OF OWNERS AND OPERATORS.—Section 1232(c)
of the Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
(b) MAXIMUM ENROLLMENT.—Section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) is amended by striking subsection
(d) and inserting the following:
‘‘(d) MAXIMUM ENROLLMENT.—The Secretary may maintain up
to 36,400,000 acres in the conservation reserve at any one time
during the 1986 through 2002 calendar years (including contracts
extended by the Secretary pursuant to section 1437(c) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–
624; 16 U.S.C. 3831 note)).’’.
(c) OPTIONAL CONTRACT TERMINATION BY PRODUCERS.—Section
1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘3-year’’ and inserting
‘‘1-year’’; and
(B) in paragraph (2)(B)(i), by striking ‘‘3 years’’ and
inserting ‘‘1 year’’; and
(2) by adding at the end the following:
‘‘(e) TERMINATION BY OWNER OR OPERATOR.—
‘‘(1) EARLY TERMINATION AUTHORIZED.—Subject to the other
provisions of this subsection, the Secretary shall allow a partici-
pant who entered into a contract before January 1, 1995, to
terminate the contract at any time if the contract has been
in effect for at least 5 years. The termination shall not relieve
the participant of liability for a contract violation occurring
before the date of the termination. The participant shall provide
the Secretary with reasonable notice of the participant’s desire
to terminate the contract.
‘‘(2) CERTAIN LANDS EXCEPTED.—The following lands shall
not be subject to an early termination of contract under this
subsection:
‘‘(A) Filterstrips, waterways, strips adjacent to riparian
areas, windbreaks, and shelterbelts.
‘‘(B) Land with an erodibility index of more than 15.
‘‘(C) Other lands of high environmental value (includ-
ing wetlands), as determined by the Secretary.
‘‘(3) EFFECTIVE
DATE.—The contract termination shall
become effective 60 days after the date on which the owner
or operator submits the notice required under paragraph (1).
‘‘(4) PRORATED
RENTAL
PAYMENT.—If a contract entered
into under this subchapter is terminated under this subsection
before the end of the fiscal year for which a rental payment
is due, the Secretary shall provide a prorated rental payment
covering the portion of the fiscal year during which the contract
was in effect.
H. R. 2854—108
‘‘(5) RENEWED ENROLLMENT.—The termination of a contract
entered into under this subchapter shall not affect the ability
of the owner or operator who requested the termination to
submit a subsequent bid to enroll the land that was subject
to the contract into the conservation reserve.
‘‘(6) CONSERVATION REQUIREMENTS.—If land that was sub-
ject to a contract is returned to production of an agricultural
commodity, the conservation requirements under subtitles B
and C shall apply to the use of the land to the extent that
the requirements are similar to those requirements imposed
on other similar lands in the area, except that the requirements
may not be more onerous than the requirements imposed on
other lands.’’.
(d) ENROLLMENTS
IN 1997.—Section 725 of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1996 (Public Law 104–37; 109 Stat.
332), is amended by striking ‘‘: Provided,’’ and all that follows
through ‘‘1997’’.
SEC. 333. WETLANDS RESERVE PROGRAM.
(a) ENROLLMENT.—Section 1237 of the Food Security Act of
1985 (16 U.S.C. 3837) is amended by striking subsection (b) and
inserting the following:
‘‘(b) ENROLLMENT CONDITIONS.—
‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres
enrolled in the wetlands reserve program shall not exceed
975,000 acres.
‘‘(2) METHODS OF ENROLLMENT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), effec-
tive beginning October 1, 1996, to the maximum extent
practicable, the Secretary shall enroll into the wetlands
reserve program—
‘‘(i) 1⁄3 of the acres through the use of permanent
easements;
‘‘(ii) 1⁄3 of the acres through the use of 30-year
easements; and
‘‘(iii) 1⁄3 of the acres through the use of restoration
cost-share agreements.
‘‘(B) 
TEMPORARY
EASEMENTS.—Effective 
beginning
October 1, 1996, the Secretary shall not enroll acres in
the wetlands reserve program through the use of new
permanent easements until the Secretary has enrolled at
least 75,000 acres in the program through the use of tem-
porary easements.’’.
(b) ELIGIBILITY.—Section 1237(c) of the Food Security Act of
1985 (16 U.S.C. 3837(c)) is amended—
(1) by striking ‘‘2000’’ and inserting ‘‘2002’’;
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting after ‘‘determines that—’’ the following:
‘‘(1) such land maximizes wildlife benefits and wetland
values and functions;’’.
(c) OTHER ELIGIBLE LANDS.—Section 1237(d) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(d)) is amended—
(1) by inserting after ‘‘subsection (c)’’ the following ‘‘, land
that maximizes wildlife benefits and that is’’; and
H. R. 2854—109
(2) in paragraph (2), by striking ‘‘and’’ at the end and
inserting ‘‘or’’.
(d) EASEMENTS.—Section 1237A of the Food Security Act of
1985 (16 U.S.C. 3837a) is amended—
(1) in the section heading, by inserting before the period
at the end the following: ‘‘AND AGREEMENTS’’;
(2) by striking subsection (c) and inserting the following:
‘‘(c) RESTORATION PLANS.—The development of a restoration
plan, including any compatible use, under this section shall be
made through the local Natural Resources Conservation Service
representative, in consultation with the State technical committee.’’;
(3) in subsection (f), by striking the third sentence and
inserting the following: ‘‘Compensation may be provided in
not less than 5, nor more than 30, annual payments of equal
or unequal size, as agreed to by the owner and the Secretary.’’;
and
(4) by adding at the end the following:
‘‘(h) RESTORATION COST-SHARE AGREEMENTS.—The Secretary
may enroll land into the wetlands reserve program through an
agreement that requires the landowner to restore wetlands on the
land, if the agreement does not provide the Secretary with an
easement.’’.
(e) COST-SHARE AND TECHNICAL ASSISTANCE.—Section 1237C
of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended
by striking subsection (b) and inserting the following:
‘‘(b) COST-SHARE AND TECHNICAL ASSISTANCE.—
‘‘(1) EASEMENTS.—Effective beginning October 1, 1996, in
making cost-share payments under subsection (a)(1), the Sec-
retary shall—
‘‘(A) in the case of a permanent easement, pay the
owner an amount that is not less than 75 percent, but
not more than 100 percent, of the eligible costs; and
‘‘(B) in the case of a 30-year easement, pay the owner
an amount that is not less than 50 percent, but not more
than 75 percent, of the eligible costs.
‘‘(2) RESTORATION
COST-SHARE
AGREEMENTS.—In making
cost-share payments in connection with a restoration cost-share
agreement entered into under section 1237A(h), the Secretary
shall pay the owner an amount that is not less than 50 percent,
but not more than 75 percent, of the eligible costs.
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary shall provide
owners with technical assistance to assist owners in complying
with the terms of easements and restoration cost-share agree-
ments.’’.
(f) EFFECT ON EXISTING AGREEMENTS.—The amendments made
by this section shall not affect the validity or terms of any agree-
ments entered into by the Secretary of Agriculture under subchapter
C of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3837 et seq.) before the date of enactment
of this Act or any payments required to be made in connection
with the agreements.
SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3830 et seq.) is amended by adding at the end the following:
H. R. 2854—110
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY INCENTIVES
PROGRAM
‘‘SEC. 1240. PURPOSES.
‘‘The purposes of the environmental quality incentives program
established by this chapter are to—
‘‘(1) combine into a single program the functions of—
‘‘(A) the agricultural conservation program authorized
by sections 7 and 8 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590g and 590h) (as in effect
before the amendments made by section 336(a)(1) of the
Federal Agriculture Improvement and Reform Act of 1996);
‘‘(B) the Great Plains conservation program established
under section 16(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590p(b)) (as in effect before the
amendment made by section 336(b)(1) of the Federal Agri-
culture Improvement and Reform Act of 1996);
‘‘(C) the water quality incentives program established
under chapter 2 (as in effect before the amendment made
by section 336(h) of the Federal Agriculture Improvement
and Reform Act of 1996); and
‘‘(D) the Colorado River Basin salinity control program
established under section 202(c) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(c)) (as in effect before
the amendment made by section 336(c)(1) of the Federal
Agriculture Improvement and Reform Act of 1996); and
‘‘(2) carry out the single program in a manner that maxi-
mizes environmental benefits per dollar expended, and that
provides—
‘‘(A) flexible technical and financial assistance to farm-
ers and ranchers that face the most serious threats to
soil, water, and related natural resources, including grazing
lands, wetlands, and wildlife habitat;
‘‘(B) assistance to farmers and ranchers in complying
with this title and Federal and State environmental laws,
and encourages environmental enhancement;
‘‘(C) assistance to farmers and ranchers in making
beneficial, cost-effective changes to cropping systems, graz-
ing management, manure, nutrient, pest, or irrigation
management, land uses, or other measures needed to con-
serve and improve soil, water, and related natural
resources; and
‘‘(D) for the consolidation and simplification of the con-
servation planning process to reduce administrative bur-
dens on producers.
‘‘SEC. 1240A. DEFINITIONS.
‘‘In this chapter:
‘‘(1) ELIGIBLE LAND.—The term ‘eligible land’ means agri-
cultural land (including cropland, rangeland, pasture, and other
land on which crops or livestock are produced), including agri-
cultural land that the Secretary determines poses a serious
threat to soil, water, or related resources by reason of the
soil types, terrain, climatic, soil, topographic, flood, or saline
characteristics, or other factors or natural hazards.
‘‘(2) 
LAND
MANAGEMENT
PRACTICE.—The 
term 
‘land
management practice’ means a site-specific nutrient or manure
H. R. 2854—111
management, integrated pest management, irrigation manage-
ment, tillage or residue management, grazing management,
or other land management practice carried out on eligible land
that the Secretary determines is needed to protect, in the
most cost-effective manner, water, soil, or related resources
from degradation.
‘‘(3) LIVESTOCK.—The term ‘livestock’ means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep, and
such other animals as determined by the Secretary.
‘‘(4) PRODUCER.—The term ‘producer’ means a person who
is engaged in livestock or agricultural production (as defined
by the Secretary).
‘‘(5) STRUCTURAL PRACTICE.—The term ‘structural practice’
means—
‘‘(A) the establishment on eligible land of a site-specific
animal waste management facility, terrace, grassed water-
way, contour grass strip, filterstrip, tailwater pit, perma-
nent wildlife habitat, or other structural practice that the
Secretary determines is needed to protect, in the most
cost-effective manner, water, soil, or related resources from
degradation; and
‘‘(B) the capping of abandoned wells on eligible land.
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRON-
MENTAL QUALITY INCENTIVES PROGRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—During the 1996 through 2002 fiscal
years, the Secretary shall provide technical assistance, cost-
share payments, incentive payments, and education to produc-
ers, who enter into contracts with the Secretary, through an
environmental quality incentives program in accordance with
this chapter.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—A producer who imple-
ments a structural practice shall be eligible for any com-
bination of technical assistance, cost-share payments, and
education.
‘‘(B) LAND MANAGEMENT PRACTICES.—A producer who
performs a land management practice shall be eligible for
any combination of technical assistance, incentive pay-
ments, and education.
‘‘(b) APPLICATION AND TERM.—A contract between a producer
and the Secretary under this chapter may—
‘‘(1) apply to 1 or more structural practices or 1 or more
land management practices, or both; and
‘‘(2) have a term of not less than 5, nor more than 10,
years, as determined appropriate by the Secretary, depending
on the practice or practices that are the basis of the contract.
‘‘(c) STRUCTURAL PRACTICES.—
‘‘(1) OFFER SELECTION PROCESS.—The Secretary shall, to
the maximum extent practicable, establish a process for select-
ing applications for financial assistance if there are numerous
applications for assistance for structural practices that would
provide substantially the same level of environmental benefits.
The process shall be based on—
‘‘(A) a reasonable estimate of the projected cost of
the proposals and other factors identified by the Secretary
H. R. 2854—112
for determining which applications will result in the least
cost to the program authorized by this chapter; and
‘‘(B) the priorities established under this subtitle and
such other factors determined by the Secretary that maxi-
mize environmental benefits per dollar expended.
‘‘(2) CONCURRENCE
OF
OWNER.—If the producer making
an offer to implement a structural practice is a tenant of
the land involved in agricultural production, for the offer to
be acceptable, the producer shall obtain the concurrence of
the owner of the land with respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Secretary shall estab-
lish an application and evaluation process for awarding technical
assistance or incentive payments, or both, to a producer in exchange
for the performance of 1 or more land management practices by
the producer.
‘‘(e) COST-SHARE PAYMENTS, INCENTIVE PAYMENTS, AND TECH-
NICAL ASSISTANCE.—
‘‘(1) COST-SHARE PAYMENTS.—
‘‘(A) IN GENERAL.—The Federal share of cost-share pay-
ments to a producer proposing to implement 1 or more
structural practices shall be not more than 75 percent
of the projected cost of the practice, as determined by
the Secretary, taking into consideration any payment
received by the producer from a State or local government.
‘‘(B) LIMITATION.—A producer who owns or operates
a large confined livestock operation (as defined by the
Secretary) shall not be eligible for cost-share payments
to construct an animal waste management facility.
‘‘(C) OTHER
PAYMENTS.—A producer shall not be
eligible for cost-share payments for structural practices
on eligible land under this chapter if the producer receives
cost-share payments or other benefits for the same land
under chapter 1 or 3.
‘‘(2) INCENTIVE
PAYMENTS.—The Secretary shall make
incentive payments in an amount and at a rate determined
by the Secretary to be necessary to encourage a producer to
perform 1 or more land management practices.
‘‘(3) TECHNICAL ASSISTANCE.—
‘‘(A) FUNDING.—The Secretary shall allocate funding
under this chapter for the provision of technical assistance
according to the purpose and projected cost for which the
technical assistance is provided for a fiscal year. The allo-
cated amount may vary according to the type of expertise
required, quantity of time involved, and other factors as
determined appropriate by the Secretary. Funding shall
not exceed the projected cost to the Secretary of the tech-
nical assistance provided for a fiscal year.
‘‘(B) OTHER
AUTHORITIES.—The receipt of technical
assistance under this chapter shall not affect the eligibility
of the producer to receive technical assistance under other
authorities of law available to the Secretary.
‘‘(C) PRIVATE
SOURCES.—The Secretary shall ensure
that the processes of writing and developing proposals and
plans for contracts under this chapter, and of assisting
in the implementation of structural practices and land
management practices covered by the contracts, are open
to individuals in agribusiness, including agricultural
H. R. 2854—113
producers, representatives from agricultural cooperatives,
agricultural input retail dealers, and certified crop advisers.
The requirements of this subparagraph shall also apply
to any other conservation program of the Department of
Agriculture that provides incentive payments, technical
assistance, or cost-share payments.
‘‘(f) MODIFICATION OR TERMINATION OF CONTRACTS.—
‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Sec-
retary may modify or terminate a contract entered into with
a producer under this chapter if—
‘‘(A) the producer agrees to the modification or termi-
nation; and
‘‘(B) the Secretary determines that the modification
or termination is in the public interest.
‘‘(2) INVOLUNTARY
TERMINATION.—The Secretary may
terminate a contract under this chapter if the Secretary deter-
mines that the producer violated the contract.
‘‘(g) NON-FEDERAL ASSISTANCE.—The Secretary may request
the services of a State water quality agency, State fish and wildlife
agency, State forestry agency, or any other governmental or private
resource considered appropriate to assist in providing the technical
assistance necessary for the development and implementation of
a structural practice or land management practice.
‘‘SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.
‘‘In providing technical assistance, cost-share payments, and
incentive payments to producers, the Secretary shall accord a higher
priority to assistance and payments that—
‘‘(1) are provided in conservation priority areas established
under section 1230(c);
‘‘(2) maximize environmental benefits per dollar expended;
or
‘‘(3) are provided in watersheds, regions, or conservation
priority areas in which State or local governments have pro-
vided, or will provide, financial or technical assistance to
producers for the same conservation or environmental purposes.
‘‘SEC. 1240D. DUTIES OF PRODUCERS.
‘‘To receive technical assistance, cost-share payments, or incen-
tive payments under this chapter, a producer shall agree—
‘‘(1) to implement an environmental quality incentives pro-
gram plan that describes conservation and environmental goals
to be achieved through a structural practice or land manage-
ment practice, or both, that is approved by the Secretary;
‘‘(2) not to conduct any practices on the farm or ranch
that would tend to defeat the purposes of this chapter;
‘‘(3) on the violation of a term or condition of the contract
at any time the producer has control of the land, to refund
any cost-share or incentive payment received with interest,
and forfeit any future payments under this chapter, as deter-
mined by the Secretary;
‘‘(4) on the transfer of the right and interest of the producer
in land subject to the contract, unless the transferee of the
right and interest agrees with the Secretary to assume all
obligations of the contract, to refund all cost-share payments
and incentive payments received under this chapter, as deter-
mined by the Secretary;
H. R. 2854—114
‘‘(5) to supply information as required by the Secretary
to determine compliance with the environmental quality incen-
tives program plan and requirements of the program; and
‘‘(6) to comply with such additional provisions as the Sec-
retary determines are necessary to carry out the environmental
quality incentives program plan.
‘‘SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
‘‘(a) IN GENERAL.—To be eligible to enter into a contract under
the environmental quality incentives program, an owner or producer
of a livestock or agricultural operation must submit to the Secretary
for approval a plan of operations that incorporates such conservation
practices, and is based on such principles, as the Secretary considers
necessary to carry out the program, including a description of
structural practices and land management practices to be imple-
mented and the objectives to be met by the plan’s implementation.
‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary shall, to the
maximum extent practicable, eliminate duplication of planning
activities under the environmental quality incentives program and
comparable conservation programs.
‘‘SEC. 1240F. DUTIES OF THE SECRETARY.
‘‘To the extent appropriate, the Secretary shall assist a producer
in achieving the conservation and environmental goals of an
environmental quality incentives program plan by—
‘‘(1) providing an eligibility assessment of the farming or
ranching operation of the producer as a basis for developing
the plan;
‘‘(2) providing technical assistance in developing and
implementing the plan;
‘‘(3) providing technical assistance, cost-share payments,
or incentive payments for developing and implementing 1 or
more structural practices or 1 or more land management prac-
tices, as appropriate;
‘‘(4) providing the producer with information, education,
and training to aid in implementation of the plan; and
‘‘(5) encouraging the producer to obtain technical assist-
ance, cost-share payments, or grants from other Federal, State,
local, or private sources.
‘‘SEC. 1240G. LIMITATION ON PAYMENTS.
‘‘(a) IN GENERAL.—The total amount of cost-share and incentive
payments paid to a producer under this chapter may not exceed—
‘‘(1) $10,000 for any fiscal year; or
‘‘(2) $50,000 for any multiyear contract.
‘‘(b) EXCEPTION TO ANNUAL LIMIT.—The Secretary may exceed
the limitation on the annual amount of a payment under subsection
(a)(1) on a case-by-case basis if the Secretary determines that
a larger payment is—
‘‘(1) essential to accomplish the land management practice
or structural practice for which the payment is made; and
‘‘(2) consistent with the maximization of environmental
benefits per dollar expended and the purposes of this chapter
specified in section 1240.
‘‘(c) TIMING OF EXPENDITURES.—Expenditures under a contract
entered into under this chapter during a fiscal year may not be
made by the Secretary until the subsequent fiscal year.
H. R. 2854—115
‘‘SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL
QUALITY INCENTIVES PROGRAM.
‘‘(a) INTERIM ADMINISTRATION.—
‘‘(1) IN GENERAL.—During the period beginning on the date
of enactment of this section and ending on the termination
date provided under paragraph (2), to ensure that technical
assistance, cost-share payments, and incentive payments con-
tinue to be administered in an orderly manner until such
time as assistance can be provided through final regulations
issued to implement the environmental quality incentives pro-
gram established under this chapter, the Secretary shall con-
tinue to—
‘‘(A) provide technical assistance, cost-share payments,
and incentive payments under the terms and conditions
of the agricultural conservation program, the Great Plains
conservation program, the water quality incentives pro-
gram, and the Colorado River Basin salinity control pro-
gram, to the extent the terms and conditions of the program
are consistent with the environmental quality incentives
program; and
‘‘(B) use for those purposes—
‘‘(i) any funds remaining available for the agricul-
tural conservation program, the Great Plains conserva-
tion program, the water quality incentives program,
and the Colorado River Basin salinity control program;
and
‘‘(ii) as the Secretary determines to be necessary,
any funds authorized to be used to carry out the
environmental quality incentives program.
‘‘(2) TERMINATION
OF
AUTHORITY.—The authority of the
Secretary to carry out paragraph (1) shall terminate on the
date that is 180 days after the date of enactment of this
section.
‘‘(b) PERMANENT ADMINISTRATION.—Effective beginning on the
termination date provided under subsection (a)(2), the Secretary
shall provide technical assistance, cost-share payments, and incen-
tive payments for structural practices and land management prac-
tices related to crop and livestock production in accordance with
final regulations issued to carry out the environmental quality
incentives program.’’.
SEC. 335. CONSERVATION FARM OPTION.
Subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3830 et seq.) (as amended by section 334) is amended by
adding at the end the following:
‘‘CHAPTER 5—CONSERVATION FARM OPTION
‘‘SEC. 1240M. CONSERVATION FARM OPTION.
‘‘(a) IN GENERAL.—The Secretary shall establish conservation
farm option pilot programs for producers of wheat, feed grains,
cotton, and rice.
‘‘(b) ELIGIBLE OWNERS AND PRODUCERS.—An owner or producer
with a farm that has contract acreage enrolled in the agricultural
market transition program established under the Agricultural Mar-
ket Transition Act shall be eligible to participate in the conservation
farm option offered under a pilot program under subsection (a)
H. R. 2854—116
if the owner or producer meets the conditions established under
section (e).
‘‘(c) PURPOSES.—The purposes of the conservation farm option
pilot programs shall include—
‘‘(1) conservation of soil, water, and related resources;
‘‘(2) water quality protection or improvement;
‘‘(3) wetland restoration, protection, and creation;
‘‘(4) wildlife habitat development and protection; or
‘‘(5) other similar conservation purposes.
‘‘(d) CONSERVATION FARM PLAN.—
‘‘(1) IN GENERAL.—To be eligible to enter into a conservation
farm option contract, an owner or producer must prepare and
submit to the Secretary, for approval, a conservation farm
plan that shall become a part of the conservation farm option
contract.
‘‘(2) REQUIREMENTS.—A conservation farm plan shall—
‘‘(A) describe the resource-conserving crop rotations,
and all other conservation practices, to be implemented
and maintained on the acreage that is subject to contract
during the contract period;
‘‘(B) contain a schedule for the implementation and
maintenance of the practices described in the conservation
farm plan;
‘‘(C) comply with highly erodible land and wetland
conservation requirements of this title; and
‘‘(D) contain such other terms as the Secretary may
require.
‘‘(e) CONTRACTS.—
‘‘(1) IN GENERAL.—On approval of a conservation farm plan,
the Secretary may enter into a contract with the owner or
producer that specifies the acres being enrolled and the prac-
tices being adopted.
‘‘(2) DURATION OF CONTRACT.—The contract shall be for
a period of 10 years. The contract may be renewed for a period
of not to exceed 5 years on mutual agreement of the Secretary
and the owner or producer.
‘‘(3) CONSIDERATION.—In exchange for payments under this
subsection, the owner or producer shall not participate in and
shall forgo payments under—
‘‘(A) the conservation reserve program established
under subchapter B of chapter 1;
‘‘(B) the wetlands reserve program established under
subchapter C of chapter 1; and
‘‘(C) the environmental quality incentives program
established under chapter 4.
‘‘(4) OWNER
OR
PRODUCER
RESPONSIBILITIES
UNDER
THE
AGREEMENT.—Under the terms of the contract entered into
under this section, an owner or producer shall agree to—
‘‘(A) actively comply with the terms and conditions
of the approved conservation farm plan;
‘‘(B) keep such records as the Secretary may reasonably
require for purposes of evaluation of the implementation
of the conservation farm plan; and
‘‘(C) not engage in any activity that would defeat the
purposes of the conservation farm option pilot program.
‘‘(5) PAYMENTS.—The Secretary shall offer an owner or
producer annual payments under the contract that are equiva-
H. R. 2854—117
lent to the payments the owner or producer would have received
under the conservation reserve program, the wetlands reserve
program, and the environmental quality incentives program.
‘‘(6) BALANCE OF BENEFITS.—The Secretary shall not permit
an owner or producer to terminate a conservation reserve pro-
gram contract and enter a conservation farm option contract
if the Secretary determines that such action will reduce net
environmental benefits.
‘‘(f) SECRETARIAL DETERMINATIONS.—
‘‘(1) ACREAGE ESTIMATES.—Prior to each year during which
the Secretary intends to offer conservation reserve program
contracts, the Secretary shall estimate the number of acres
that—
‘‘(A) will be retired under the conservation farm option
under the terms and conditions the Secretary intends to
offer for that program; and
‘‘(B) would be retired under the conservation reserve
program if the conservation farm option were not available.
‘‘(2) 
TOTAL
LAND
RETIREMENT.—The 
Secretary 
shall
announce a number of acres to be enrolled in the conservation
reserve program that will result in a total number of acres
retired under the conservation reserve program and the con-
servation farm option that does not exceed the amount esti-
mated under paragraph (1)(B) for the current or future years.
‘‘(3) LIMITATION.—The Secretary shall not enroll additional
conservation reserve program contracts to offset the land retired
under the conservation farm option.
‘‘(g) COMMODITY CREDIT CORPORATION.—The Secretary shall
use the funds, authorities, and facilities of the Commodity Credit
Corporation to carry out this subsection.
‘‘(h) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Corporation shall make available to carry out this section—
‘‘(1) $7,500,000 for fiscal year 1997;
‘‘(2) $15,000,000 for fiscal year 1998;
‘‘(3) $25,000,000 for fiscal year 1999;
‘‘(4) $37,500,000 for fiscal year 2000;
‘‘(5) $50,000,000 for fiscal year 2001; and
‘‘(6) $62,500,000 for fiscal year 2002.’’.
SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.
(a) AGRICULTURAL CONSERVATION PROGRAM.—
(1) ELIMINATION.—
(A) Section 8 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h) is amended—
(i) in subsection (b)—
(I) by striking paragraphs (1) through (4) and
inserting the following:
‘‘(1) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.—The
Secretary shall provide technical assistance, cost-share pay-
ments, and incentive payments to operators through the
environmental quality incentives program in accordance with
chapter 4 of subtitle D of title XII of the Food Security Act
of 1985.’’; and
(II) by striking paragraphs (6) through (8);
and
(ii) by striking subsections (d), (e), and (f).
H. R. 2854—118
(B) The first sentence of section 11 of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590k) is amend-
ed by striking ‘‘performance: Provided further,’’ and all
that follows through ‘‘or other law’’ and inserting ‘‘perform-
ance’’.
(C) Section 14 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590n) is amended—
(i) in the first sentence, by striking ‘‘or 8’’; and
(ii) by striking the second sentence.
(D) Section 15 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590o) is amended—
(i) in the first undesignated paragraph—
(I) in the first sentence, by striking ‘‘sections
7 and 8’’ and inserting ‘‘section 7’’; and
(II) by striking the third sentence; and
(ii) by striking the second undesignated paragraph.
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (1) of the last proviso of the matter
under the heading ‘‘CONSERVATION
RESERVE
PROGRAM’’
under the heading ‘‘SOIL BANK PROGRAMS’’ of title I of
the Department of Agriculture and Farm Credit Adminis-
tration Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C.
1831a), is amended by striking ‘‘Agricultural Conservation
Program’’ and inserting ‘‘environmental quality incentives
program established under chapter 4 of subtitle D of title
XII of the Food Security Act of 1985’’.
(B) Section 4 of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103) is amended by striking ‘‘as
added by the Agriculture and Consumer Protection Act
of 1973’’ each place it appears in subsections (d) and (i)
and inserting ‘‘as in effect before the amendment made
by section 336(d)(1) of the Federal Agriculture Improve-
ment and Reform Act of 1996’’.
(C) Section 226(b)(4) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6932(b)(4)) is amended
by striking ‘‘and the agricultural conservation program
under the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590g et seq.)’’.
(D) Section 246(b)(8) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6962(b)(8)) is amended
by striking ‘‘and the agricultural conservation program
under the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590g et seq.)’’.
(E) Section 1271(c)(3)(C) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(C))
is amended by striking ‘‘Agricultural Conservation Program
established under section 16(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h, 590l, or
590p)’’ and inserting ‘‘environmental quality incentives pro-
gram established under chapter 4 of subtitle D of title
XII of the Food Security Act of 1985’’.
(F) Section 304(a) of the Lake Champlain Special Des-
ignation Act of 1990 (Public Law 101–596; 33 U.S.C. 1270
note) is amended—
(i) in the subsection heading, by striking ‘‘SPECIAL
PROJECT AREA UNDER THE AGRICULTURAL CONSERVA-
TION PROGRAM’’ and inserting ‘‘PRIORITY AREA UNDER
H. R. 2854—119
THE ENVIRONMENTAL QUALITY INCENTIVES PROGRAM’’;
and
(ii) in paragraph (1), by striking ‘‘special project
area under the Agricultural Conservation Program
established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b))’’ and
inserting ‘‘priority area under the environmental qual-
ity incentives program established under chapter 4
of subtitle D of title XII of the Food Security Act
of 1985’’.
(G) Section 6 of the Department of Agriculture Organic
Act of 1956 (70 Stat. 1033) is amended by striking sub-
section (b).
(b) GREAT PLAINS CONSERVATION PROGRAM.—
(1) ELIMINATION.—Section 16 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590p) is repealed.
(2) CONFORMING AMENDMENTS.—
(A) The Agricultural Adjustment Act of 1938 is amend-
ed by striking ‘‘Great Plains program’’ each place it appears
in sections 344(f)(8) and 377 (7 U.S.C. 1344(f)(8) and 1377)
and inserting ‘‘environmental quality incentives program
established under chapter 4 of subtitle D of title XII of
the Food Security Act of 1985’’.
(B) Section 246(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended
by striking paragraph (2).
(c) COLORADO RIVER BASIN SALINITY CONTROL PROGRAM.—
(1) IN GENERAL.—Section 202 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592) is amended by striking
subsection (c) and inserting the following:
‘‘(c) SALINITY CONTROL MEASURES.—The Secretary of Agri-
culture shall carry out salinity control measures (including water-
shed enhancement and cost-share measures with livestock and crop
producers) in the Colorado River Basin as part of the environmental
quality incentives program established under chapter 4 of subtitle
D of title XII of the Food Security Act of 1985.’’.
(2) FUNDS.—Section 205 of the Colorado River Basin Salin-
ity Control Act (43 U.S.C. 1595) is amended—
(A) in subsection (a), by striking ‘‘pursuant to section
202(c)(2)(C)’’; and
(B) by adding at the end the following:
‘‘(f) FUNDS.—The Secretary may expend funds available in the
Basin Funds referred to in this section to carry out cost-share
salinity measures in a manner that is consistent with the cost
allocations required under this section.’’.
(3) CONFORMING
AMENDMENT.—Section 246(b)(6) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(6)) is amended by striking ‘‘program’’ and inserting
‘‘measures’’.
(d) RURAL ENVIRONMENTAL CONSERVATION PROGRAM.—
(1) ELIMINATION.—Title X of the Agricultural Act of 1970
(16 U.S.C. 1501 et seq.) is repealed.
(2) CONFORMING AMENDMENTS.—Section 246 of the Depart-
ment of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962)
(as amended by subsection (b)(2)(B)) is amended—
(A) in subsection (b)—
(i) by striking paragraph (1); and
H. R. 2854—120
(ii) by redesignating paragraphs (3) through (8)
as paragraphs (1) through (6), respectively; and
(B) in subsection (c), by striking ‘‘(2), (3), (4), and
(6)’’ and inserting ‘‘(1), (2), and (4)’’.
(e) OTHER CONSERVATION PROVISIONS.—Subtitle F of title XII
of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note)
is repealed.
(f) RESOURCE CONSERVATION.—
(1) ELIMINATION.—Subtitles A, B, D, E, and F of title
XV of the Agriculture and Food Act of 1981 (95 Stat. 1328;
16 U.S.C. 3401 et seq.) are repealed.
(2) CONFORMING
AMENDMENT.—Section 739 of the Agri-
culture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1992 (7 U.S.C.
2272a), is repealed.
(g) TECHNICAL AMENDMENT.—The first sentence of the matter
under the heading ‘‘COMMODITY CREDIT CORPORATION’’ of Public
Law 99–263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by
striking ‘‘prices: Provided further,’’ and all that follows through
‘‘Acts.’’ and inserting ‘‘prices.’’.
(h) AGRICULTURAL WATER QUALITY INCENTIVES PROGRAM.—
Chapter 2 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3838 et seq.) is repealed.
Subtitle E—Conservation Funding and
Administration
SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.
Subtitle E of title XII of the Food Security Act of 1985 (16
U.S.C. 3841 et seq.) is amended to read as follows:
‘‘Subtitle E—Funding and Administration
‘‘SEC. 1241. FUNDING.
‘‘(a) MANDATORY EXPENSES.—For each of fiscal years 1996
through 2002, the Secretary shall use the funds of the Commodity
Credit Corporation to carry out the programs authorized by—
‘‘(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437
of the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101–624; 16 U.S.C. 3831 note));
‘‘(2) subchapter C of chapter 1 of subtitle D; and
‘‘(3) chapter 4 of subtitle D.
‘‘(b) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.—
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit
Corporation, the Secretary shall make available $130,000,000
for fiscal year 1996, and $200,000,000 for each of fiscal years
1997 through 2002, for providing technical assistance, cost-
share payments, incentive payments, and education under the
environmental quality incentives program under chapter 4 of
subtitle D.
‘‘(2) LIVESTOCK PRODUCTION.—For each of fiscal years 1996
through 2002, 50 percent of the funding available for technical
assistance, cost-share payments, incentive payments, and edu-
H. R. 2854—121
cation under the environmental quality incentives program
shall be targeted at practices relating to livestock production.
‘‘SEC. 1242. USE OF OTHER AGENCIES.
‘‘(a) COMMITTEES.—In carrying out subtitles B, C, and D, the
Secretary shall use the services of local, county, and State commit-
tees established under section 8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)).
‘‘(b) OTHER AGENCIES.—
‘‘(1) USE.—In carrying out subtitles C and D, the Secretary
may utilize the services of the Natural Resources Conservation
Service and the Forest Service, the Fish and Wildlife Service,
State forestry agencies, State fish and game agencies, land-
grant colleges, local, county, and State committees established
under section 8(b) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h), soil and water conservation districts,
and other appropriate agencies.
‘‘(2) CONSULTATION.—In carrying out subtitle D at the State
and county levels, the Secretary shall consult with, to the
extent practicable, the Fish and Wildlife Service, State forestry
agencies, State fish and game agencies, land-grant colleges,
soil-conservation districts, and other appropriate agencies.
‘‘SEC. 1243. ADMINISTRATION.
‘‘(a) PLANS.—The Secretary shall, to the extent practicable,
avoid duplication in—
‘‘(1) the conservation plans required for—
‘‘(A) highly erodible land conservation under subtitle
B;
‘‘(B) the conservation reserve program established
under subchapter B of chapter 1 of subtitle D; and
‘‘(C) the wetlands reserve program established under
subchapter C of chapter 1 of subtitle D; and
‘‘(2) the environmental quality incentives program estab-
lished under chapter 4 of subtitle D.
‘‘(b) ACREAGE LIMITATION.—
‘‘(1) IN GENERAL.—The Secretary shall not enroll more than
25 percent of the cropland in any county in the programs
administered under the conservation reserve and wetlands
reserve programs established under subchapters B and C,
respectively, of chapter 1 of subtitle D. Not more than 10
percent of the cropland in a county may be subject to an
easement acquired under the subchapters.
‘‘(2) EXCEPTION.—The Secretary may exceed the limitations
in paragraph (1) if the Secretary determines that—
‘‘(A) the action would not adversely affect the local
economy of a county; and
‘‘(B) operators in the county are having difficulties
complying with conservation plans implemented under sec-
tion 1212.
‘‘(3) SHELTERBELTS
AND
WINDBREAKS.—The limitations
established under this subsection shall not apply to cropland
that is subject to an easement under chapter 1 or 3 of subtitle
D that is used for the establishment of shelterbelts and
windbreaks.
‘‘(c) TENANT PROTECTION.—Except for a person who is a tenant
on land that is subject to a conservation reserve contract that
has been extended by the Secretary, the Secretary shall provide
H. R. 2854—122
adequate safeguards to protect the interests of tenants and share-
croppers, including provision for sharing, on a fair and equitable
basis, in payments under the programs established under subtitles
B through D.
‘‘(d) 
PROVISION
OF
TECHNICAL
ASSISTANCE
BY
OTHER
SOURCES.—In the preparation and application of a conservation
compliance plan under subtitle B or similar plan required as a
condition for assistance from the Department of Agriculture, the
Secretary shall permit persons to secure technical assistance from
approved sources, as determined by the Secretary, other than the
Natural Resources Conservation Service. If the Secretary rejects
a technical determination made by such a source, the basis of
the Secretary’s determination must be supported by documented
evidence.
‘‘(e) REGULATIONS.—Not later than 90 days after the date of
enactment of the Federal Agriculture Improvement and Reform
Act of 1996, the Secretary shall issue regulations to implement
the conservation reserve and wetlands reserve programs established
under chapter 1 of subtitle D.’’.
SEC. 342. STATE TECHNICAL COMMITTEES.
(a) COMPOSITION.—Section 1261(c) of the Food Security Act
of 1985 (16 U.S.C. 3861(c))—
(1) in paragraph (7), by striking ‘‘and’’ at the end;
(2) in paragraph (8), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(9) agricultural producers with demonstrable conservation
expertise;
‘‘(10) nonprofit organizations with demonstrable conserva-
tion expertise;
‘‘(11) persons knowledgeable about conservation techniques;
and
‘‘(12) agribusiness.’’.
(b) RESPONSIBILITIES.—Section 1262 of the Food Security Act
of 1985 (16 U.S.C. 3862) is amended—
(1) in subsection (a), by adding at the end the following:
‘‘Each State technical committee shall provide public notice
of, and permit public attendance at meetings considering, issues
of concern related to carrying out this title.’’;
(2) in subsection (b)(1), by adding at the end the following:
‘‘Each State technical committee shall establish criteria and
guidelines for evaluating petitions by agricultural producers
regarding new conservation practices and systems not already
described in field office technical guides.’’; and
(3) in subsection (c)—
(A) in paragraph (7), by striking ‘‘and’’ at the end;
(B) by redesignating paragraph (8) as paragraph (9);
and
(C) by inserting after paragraph (7) the following:
‘‘(8) establishing criteria and priorities for State initiatives
under the environmental quality incentives program under
chapter 4 of subtitle D; and’’.
SEC. 343. PUBLIC NOTICE AND COMMENT FOR REVISIONS TO CERTAIN
STATE TECHNICAL GUIDES.
After the date of enactment of this Act, the Secretary of Agri-
culture shall provide for public notice and comment under section
H. R. 2854—123
553 of title 5, United States Code, with regard to any future
revisions to those provisions of the Natural Resources Conservation
Service State technical guides that are used to carry out subtitles
A, B, and C of title XII of the Food Security Act of 1985 (16
U.S.C. 3801 et seq.).
Subtitle F—National Natural Resources
Conservation Foundation
SEC. 351. SHORT TITLE.
This subtitle may be cited as the ‘‘National Natural Resources
Conservation Foundation Act’’.
SEC. 352. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) BOARD.—The term ‘‘Board’’ means the Board of Trustees
established under section 354.
(2) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(3) FOUNDATION.—The term ‘‘Foundation’’ means the
National Natural Resources Conservation Foundation estab-
lished by section 353(a).
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
SEC. 353. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDA-
TION.
(a) ESTABLISHMENT.—A National Natural Resources Conserva-
tion Foundation is established as a charitable and nonprofit corpora-
tion for charitable, scientific, and educational purposes specified
in subsection (b). The Foundation is not an agency or instrumental-
ity of the United States.
(b) DUTIES.—The Foundation shall—
(1) promote innovative solutions to the problems associated
with the conservation of natural resources on private lands,
particularly with respect to agriculture and soil and water
conservation;
(2) promote voluntary partnerships between government
and private interests in the conservation of natural resources;
(3) conduct research and undertake educational activities,
conduct and support demonstration projects, and make grants
to State and local agencies and nonprofit organizations;
(4) provide such other leadership and support as may be
necessary to address conservation challenges, such as the
prevention of excessive soil erosion, the enhancement of soil
and water quality, and the protection of wetlands, wildlife
habitat, and strategically important farmland subject to urban
conversion and fragmentation;
(5) encourage, accept, and administer private gifts of money
and real and personal property for the benefit of, or in connec-
tion with, the conservation and related activities and services
of the Department, particularly the Natural Resources Con-
servation Service;
(6) undertake, conduct, and encourage educational, tech-
nical, and other assistance, and other activities, that support
the conservation and related programs administered by the
H. R. 2854—124
Department (other than activities carried out on National For-
est System lands), particularly the Natural Resources Con-
servation Service, except that the Foundation may not enforce
or administer a regulation of the Department; and
(7) raise private funds to promote the purposes of the
Foundation.
(c) LIMITATIONS AND CONFLICTS OF INTEREST.—
(1) POLITICAL
ACTIVITIES.—The Foundation shall not
participate or intervene in a political campaign on behalf of
any candidate for public office.
(2) CONFLICTS
OF
INTEREST.—No director, officer, or
employee of the Foundation shall participate, directly or
indirectly, in the consideration or determination of any question
before the Foundation affecting—
(A) the financial interests of the director, officer, or
employee; or
(B) the interests of any corporation, partnership, entity,
organization, or other person in which the director, officer,
or employee—
(i) is an officer, director, or trustee; or
(ii) has any direct or indirect financial interest.
(3) LEGISLATION OR GOVERNMENT ACTION OR POLICY.—No
funds of the Foundation may be used in any manner for the
purpose of influencing legislation or government action or pol-
icy.
(4) LITIGATION.—No funds of the Foundation may be used
to bring or join an action against the United States.
SEC. 354. COMPOSITION AND OPERATION.
(a) COMPOSITION.—The Foundation shall be administered by
a Board of Trustees that shall consist of 9 voting members, each
of whom shall be a United States citizen and not a Federal officer.
The Board shall be composed of—
(1) individuals with expertise in agricultural conservation
policy matters;
(2) a representative of private sector organizations with
a demonstrable interest in natural resources conservation;
(3) a representative of statewide conservation organiza-
tions;
(4) a representative of soil and water conservation districts;
(5) a representative of organizations outside the Federal
Government that are dedicated to natural resources conserva-
tion education; and
(6) a farmer or rancher.
(b) NONGOVERNMENTAL EMPLOYEES.—Service as a member of
the Board shall not constitute employment by, or the holding of,
an office of the United States for the purposes of any Federal
law.
(c) MEMBERSHIP.—
(1) INITIAL MEMBERS.—The Secretary shall appoint 9 per-
sons who meet the criteria established under subsection (a)
as the initial members of the Board and designate 1 of the
members as the initial chairperson for a 2-year term.
(2) TERMS OF OFFICE.—
(A) IN GENERAL.—A member of the Board shall serve
for a term of 3 years, except that the members appointed
H. R. 2854—125
to the initial Board shall serve, proportionately, for terms
of 1, 2, and 3 years, as determined by the Secretary.
(B) LIMITATION ON TERMS.—No individual may serve
more than 2 consecutive 3-year terms as a member of
the Board.
(3) SUBSEQUENT
MEMBERS.—The initial members of the
Board shall adopt procedures in the constitution of the Founda-
tion for the nomination and selection of subsequent members
of the Board. The procedures shall require that each member,
at a minimum, meets the criteria established under subsection
(a) and shall provide for the selection of an individual, who
is not a Federal officer or a member of the Board.
(d) CHAIRPERSON.—After the appointment of an initial chair-
person under subsection (c)(1), each succeeding chairperson of the
Board shall be elected by the members of the Board for a 2-
year term.
(e) VACANCIES.—A vacancy on the Board shall be filled by
the Board not later than 60 days after the occurrence of the vacancy.
(f) COMPENSATION.—A member of the Board shall receive no
compensation from the Foundation for the service of the member
on the Board.
(g) TRAVEL EXPENSES.—While away from the home or regular
place of business of a member of the Board in the performance
of services for the Board, the member shall be allowed travel
expenses paid by the Foundation, including per diem in lieu of
subsistence, at the same rate as a person employed intermittently
in the Government service is allowed under section 5703 of title
5, United States Code.
SEC. 355. OFFICERS AND EMPLOYEES.
(a) IN GENERAL.—The Board may—
(1) appoint, hire, and discharge the officers and employees
of the Foundation, other than appoint the initial Executive
Director of the Foundation;
(2) adopt a constitution and bylaws for the Foundation
that are consistent with the purposes of this subtitle; and
(3) undertake any other activities that may be necessary
to carry out this subtitle.
(b) OFFICERS AND EMPLOYEES.—
(1) APPOINTMENT AND HIRING.—An officer or employee of
the Foundation—
(A) shall not, by virtue of the appointment or employ-
ment of the officer or employee, be considered a Federal
employee for any purpose, including the provisions of title
5, United States Code, governing appointments in the
competitive service, except that such an individual may
participate in the Federal employee retirement system as
if the individual were a Federal employee; and
(B) may not be paid by the Foundation a salary in
excess of $125,000 per year.
(2) EXECUTIVE DIRECTOR.—
(A) INITIAL DIRECTOR.—The Secretary shall appoint an
individual to serve as the initial Executive Director of
the Foundation who shall serve, at the direction of the
Board, as the chief operating officer of the Foundation.
(B) SUBSEQUENT DIRECTORS.—The Board shall appoint
each subsequent Executive Director of the Foundation who
H. R. 2854—126
shall serve, at the direction of the Board, as the chief
operating officer of the Foundation.
(C) QUALIFICATIONS.—The Executive Director shall be
knowledgeable and experienced in matters relating to natu-
ral resources conservation.
SEC. 356. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDA-
TION.
(a) IN GENERAL.—The Foundation—
(1) may conduct business throughout the United States
and the territories and possessions of the United States; and
(2) shall at all times maintain a designated agent who
is authorized to accept service of process for the Foundation,
so that the serving of notice to, or service of process on, the
agent, or mailed to the business address of the agent, shall
be considered as service on or notice to the Foundation.
(b) SEAL.—The Foundation shall have an official seal selected
by the Board that shall be judicially noticed.
(c) POWERS.—To carry out the purposes of the Foundation under
section 353(b), the Foundation shall have, in addition to the powers
otherwise provided under this subtitle, the usual powers of a cor-
poration, including the power—
(1) to accept, receive, solicit, hold, administer, and use
any gift, devise, or bequest, either absolutely or in trust, of
real or personal property or any income from, or other interest
in, the gift, devise, or bequest;
(2) to acquire by purchase or exchange any real or personal
property or interest in property, except that funds provided
under section 360 may not be used to purchase an interest
in real property;
(3) unless otherwise required by instrument of transfer,
to sell, donate, lease, invest, reinvest, retain, or otherwise dis-
pose of any property or income from property;
(4) to borrow money from private sources and issue bonds,
debentures, or other debt instruments, subject to section 359,
except that the aggregate amount of the borrowing and debt
instruments outstanding at any time may not exceed
$1,000,000;
(5) to sue and be sued, and complain and defend itself,
in any court of competent jurisdiction, except that a member
of the Board shall not be personally liable for an action in
the performance of services for the Board, except for gross
negligence;
(6) to enter into a contract or other agreement with an
agency of State or local government, educational institution,
or other private organization or person and to make such pay-
ments as may be necessary to carry out the functions of the
Foundation; and
(7) to do any and all acts that are necessary to carry
out the purposes of the Foundation.
(d) INTERESTS IN PROPERTY.—
(1) INTERESTS IN REAL PROPERTY.—The Foundation may
acquire, hold, and dispose of lands, waters, or other interests
in real property by donation, gift, devise, purchase, or exchange.
An interest in real property shall be treated, among other
things, as including an easement or other right for the preserva-
tion, conservation, protection, or enhancement of agricultural,
H. R. 2854—127
natural, scenic, historic, scientific, educational, inspirational,
or recreational resources.
(2) GIFTS.—A gift, devise, or bequest may be accepted by
the Foundation even though the gift, devise, or bequest is
encumbered, restricted, or subject to a beneficial interest of
a private person if any current or future interest in the gift,
devise, or bequest is for the benefit of the Foundation.
SEC. 357. ADMINISTRATIVE SERVICES AND SUPPORT.
For each of fiscal years 1996 through 1998, the Secretary may
provide, without reimbursement, personnel, facilities, and other
administrative services of the Department to the Foundation.
SEC. 358. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUI-
TABLE RELIEF.
(a) AUDITS.—
(1) IN
GENERAL.—The accounts of the Foundation shall
be audited in accordance with Public Law 88–504 (36 U.S.C.
1101 et seq.), including an audit of lobbying and litigation
activities carried out by the Foundation.
(2) CONFORMING AMENDMENT.—The first section of Public
Law 88–504 (36 U.S.C. 1101) is amended by adding at the
end the following:
‘‘(77) The National Natural Resources Conservation
Foundation.’’.
(b) RELIEF WITH RESPECT TO CERTAIN FOUNDATION ACTS OR
FAILURE TO ACT.—The Attorney General may petition in the United
States District Court for the District of Columbia for such equitable
relief as may be necessary or appropriate, if the Foundation—
(1) engages in, or threatens to engage in, any act, practice,
or policy that is inconsistent with this subtitle; or
(2) refuses, fails, neglects, or threatens to refuse, fail, or
neglect, to discharge the obligations of the Foundation under
this subtitle.
SEC. 359. RELEASE FROM LIABILITY.
(a) IN GENERAL.—The United States shall not be liable for
any debt, default, act, or omission of the Foundation. The full
faith and credit of the United States shall not extend to the Founda-
tion.
(b) STATEMENT.—An obligation issued by the Foundation, and
a document offering an obligation, shall include a prominent state-
ment that the obligation is not directly or indirectly guaranteed,
in whole or in part, by the United States (or an agency or instrumen-
tality of the United States).
SEC. 360. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Department
to be made available to the Foundation $1,000,000 for each of
fiscal years 1997 through 1999 to initially establish and carry
out activities of the Foundation.
H. R. 2854—128
Subtitle G—Forestry
SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 6704) is amended by adding at the end
the following:
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated for each of fiscal years 1996 through 2002
such sums as are necessary to carry out this section.’’.
SEC. 372. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND
IMPROVEMENT OF NATIONAL FOREST SYSTEM.
The penultimate paragraph of the matter under the heading
‘‘FOREST SERVICE.’’ of the first section of the Act of June 30,
1914 (38 Stat. 430, chapter 131; 16 U.S.C. 498), is amended—
(1) by inserting ‘‘, management,’’ after ‘‘the protection’’;
(2) by striking ‘‘national forests,’’ and inserting ‘‘National
Forest System,’’;
(3) by inserting ‘‘management,’’ after ‘‘protection,’’ both
places it appears; and
(4) by adding at the end the following: ‘‘Payment for work
undertaken pursuant to this paragraph may be made from
any appropriation of the Forest Service that is available for
similar work if a written agreement so provides and reimburse-
ment will be provided by a cooperator in the same fiscal year
as the expenditure by the Forest Service. A reimbursement
received from a cooperator that covers the proportionate share
of the cooperator of the cost of the work shall be deposited
to the credit of the appropriation of the Forest Service from
which the payment was initially made or, if the appropriation
is no longer available, to the credit of an appropriation of
the Forest Service that is available for similar work. The Sec-
retary of Agriculture shall establish written rules that establish
criteria to be used to determine whether the acceptance of
contributions of money under this paragraph would adversely
affect the ability of an officer or employee of the Department
of Agriculture to carry out a duty or program of the officer
or employee in a fair and objective manner or would com-
promise, or appear to compromise, the integrity of the program,
officer, or employee. The Secretary of Agriculture shall establish
written rules that protect the interests of the Forest Service
in cooperative work agreements.’’.
SEC. 373. FORESTRY INCENTIVES PROGRAM.
Section 4 of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2103) is amended—
(1) in subsection (j), by striking ‘‘annually’’ and inserting
‘‘for each of fiscal years 1996 through 2002’’; and
(2) by striking subsection (k).
SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.
Section 7 of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2103c) is amended—
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
‘‘(l) OPTIONAL STATE GRANTS.—
H. R. 2854—129
‘‘(1) IN GENERAL.—The Secretary shall, at the request of
a participating State, provide a grant to the State to carry
out the Forest Legacy Program in the State.
‘‘(2) ADMINISTRATION.—If a State elects to receive a grant
under this subsection—
‘‘(A) the Secretary shall use a portion of the funds
made available under subsection (m), as determined by
the Secretary, to provide a grant to the State; and
‘‘(B) the State shall use the grant to carry out the
Forest Legacy Program in the State, including the acquisi-
tion by the State of lands and interests in lands.’’.
Subtitle H—Miscellaneous Conservation
Provisions
SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT COR-
PORATION.
(a) IN GENERAL.—Section 5 of the Commodity Credit Corpora-
tion Charter Act (15 U.S.C. 714c) is amended—
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
‘‘(g) Carry out conservation or environmental programs author-
ized by law.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall become effective on January 1, 1997.
SEC. 382. FLOODPLAIN EASEMENTS.
Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C.
2203) is amended by inserting ‘‘, including the purchase of floodplain
easements,’’ after ‘‘emergency measures’’.
SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
Section 1538 of the Agriculture and Food Act of 1981 (16
U.S.C. 3461) is amended by striking ‘‘1991 through 1995’’ and
inserting ‘‘1996 through 2002’’.
SEC. 384. REPEAL OF REPORT REQUIREMENT.
Section 1342 of title 44, United States Code, is repealed.
SEC. 385. FLOOD RISK REDUCTION.
(a) IN GENERAL.—During fiscal years 1996 through 2002, the
Secretary of Agriculture (referred to in this section as the ‘‘Sec-
retary’’) may enter into a contract with a producer on a farm
who has contract acreage under the Agricultural Market Transition
Act that is frequently flooded.
(b) DUTIES OF PRODUCERS.—Under the terms of the contract,
with respect to acres that are subject to the contract, the producer
must agree to—
(1) the termination of any contract acreage and production
flexibility contract under the Agricultural Market Transition
Act;
(2) forgo loans for contract commodities, oilseeds, and extra
long staple cotton;
(3) not apply for crop insurance issued or reinsured by
the Secretary;
(4) comply with applicable highly erodible land and wet-
lands conservation compliance requirements established under
H. R. 2854—130
title XII of the Food Security Act of 1985 (16 U.S.C. 3801
et seq.);
(5) not apply for any conservation program payments from
the Secretary;
(6) not apply for disaster program benefits provided by
the Secretary; and
(7) refund the payments, with interest, issued under the
flood risk reduction contract to the Secretary, if the producer
violates the terms of the contract or if the producer transfers
the property to another person who violates the contract.
(c) DUTIES OF THE SECRETARY.—In return for a contract entered
into by a producer under this section, the Secretary shall pay
the producer an amount that is not more than 95 percent of pro-
jected contract payments under the Agricultural Market Transition
Act that the Secretary estimates the producer would otherwise
have received during the period beginning at the time the contract
is entered into under this section and ending September 30, 2002.
(d) COMMODITY CREDIT CORPORATION.—The Secretary shall
carry out the program authorized by this section (other than sub-
section (e)) through the Commodity Credit Corporation.
(e) ADDITIONAL PAYMENTS.—
(1) IN GENERAL.—Subject to the availability of advanced
appropriations, the Secretary may make payments to a producer
described in subsection (a), in addition to the payments provided
under subsection (c), to offset other estimated Federal Govern-
ment outlays on frequently flooded land.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated such sums as are necessary to carry
out paragraph (1).
(f) LIMITATION
ON PAYMENTS.—Amounts made available for
production flexibility contracts under section 113 shall be reduced
by an amount that is equal to the contract payments that producers
forgo under subsection (b)(1) of this section.
SEC. 386. CONSERVATION OF PRIVATE GRAZING LAND.
(a) FINDINGS.—Congress finds that—
(1) private grazing land constitutes nearly 1⁄2 of the non-
Federal land of the United States and is basic to the environ-
mental, social, and economic stability of rural communities;
(2) private grazing land contains a complex set of inter-
actions among soil, water, air, plants, and animals;
(3) grazing land constitutes the single largest watershed
cover type in the United States and contributes significantly
to the quality and quantity of water available for all of the
many uses of the land;
(4) private grazing land constitutes the most extensive
wildlife habitat in the United States;
(5) private grazing land can provide opportunities for
improved nutrient management from land application of animal
manures and other by-product nutrient resources;
(6) owners and managers of private grazing land need
to continue to recognize conservation problems when the prob-
lems arise and receive sound technical assistance to improve
or conserve grazing land resources to meet ecological and eco-
nomic demands;
(7) new science and technology must continually be made
available in a practical manner so owners and managers of
H. R. 2854—131
private grazing land may make informed decisions concerning
vital grazing land resources;
(8) agencies of the Department with private grazing land
responsibilities are the agencies that have the expertise and
experience to provide technical assistance, education, and
research to owners and managers of private grazing land for
the long-term productivity and ecological health of grazing land;
(9) although competing demands on private grazing land
resources are greater than ever before, assistance to private
owners and managers of private grazing land is currently lim-
ited and does not meet the demand and basic need for ade-
quately sustaining or enhancing the private grazing land
resources; and
(10) private grazing land can be enhanced to provide many
benefits to all citizens of the United States through voluntary
cooperation among owners and managers of the land, local
conservation districts, and the agencies of the Department
responsible for providing assistance to owners and managers
of land and to conservation districts.
(b) PURPOSE.—It is the purpose of this section to authorize
the Secretary to provide a coordinated technical, educational, and
related assistance program to conserve and enhance private grazing
land resources and provide related benefits to all citizens of the
United States by—
(1) establishing a coordinated and cooperative Federal,
State, and local grazing conservation program for management
of private grazing land;
(2) strengthening technical, educational, and related assist-
ance programs that provide assistance to owners and managers
of private grazing land;
(3) conserving and improving wildlife habitat on private
grazing land;
(4) conserving and improving fish habitat and aquatic sys-
tems through grazing land conservation treatment;
(5) protecting and improving water quality;
(6) improving the dependability and consistency of water
supplies;
(7) identifying and managing weed, noxious weed, and
brush encroachment problems on private grazing land; and
(8) integrating conservation planning and management
decisions by owners and managers of private grazing land,
on a voluntary basis.
(c) DEFINITIONS.—In this section:
(1) DEPARTMENT.—The term ‘‘Department’’ means the
Department of Agriculture.
(2) PRIVATE
GRAZING
LAND.—The term ‘‘private grazing
land’’ means private, State-owned, tribally-owned, and any
other non-federally owned rangeland, pastureland, grazed forest
land, and hay land.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(d) PRIVATE GRAZING LAND CONSERVATION ASSISTANCE.—
(1) ASSISTANCE TO GRAZING LANDOWNERS AND OTHERS.—
Subject to the availability of appropriations for this section,
the Secretary shall establish a voluntary program to provide
technical, educational, and related assistance to owners and
managers of private grazing land and public agencies, through
H. R. 2854—132
local conservation districts, to enable the landowners, man-
agers, and public agencies to voluntarily carry out activities
that are consistent with this section, including—
(A) maintaining and improving private grazing land
and the multiple values and uses that depend on private
grazing land;
(B) implementing grazing land management tech-
nologies;
(C) managing resources on private grazing land, includ-
ing—
(i) planning, managing, and treating private graz-
ing land resources;
(ii) ensuring the long-term sustainability of private
grazing land resources;
(iii) harvesting, processing, and marketing private
grazing land resources; and
(iv) identifying and managing weed, noxious weed,
and brush encroachment problems;
(D) protecting and improving the quality and quantity
of water yields from private grazing land;
(E) maintaining and improving wildlife and fish habitat
on private grazing land;
(F) enhancing recreational opportunities on private
grazing land;
(G) maintaining and improving the aesthetic character
of private grazing lands; and
(H) identifying the opportunities and encouraging the
diversification of private grazing land enterprises.
(2) PROGRAM ELEMENTS.—
(A) FUNDING.—If funding is provided to carry out this
section, it shall be provided through a specific line-item
in the annual appropriations for the Natural Resources
Conservation Service.
(B) TECHNICAL ASSISTANCE AND EDUCATION.—Person-
nel of the Department trained in pasture and range
management shall be made available under the program
to deliver and coordinate technical assistance and education
to owners and managers of private grazing land, at the
request of the owners and managers.
(e) GRAZING TECHNICAL ASSISTANCE SELF-HELP.—
(1) FINDINGS.—Congress finds that—
(A) there is a severe lack of technical assistance for
farmers and ranchers who graze livestock;
(B) Federal budgetary constraints preclude any signifi-
cant expansion, and may force a reduction of, current levels
of technical support; and
(C) farmers and ranchers have a history of coopera-
tively working together to address common needs in the
promotion of their products and in the drainage of wet
areas through drainage districts.
(2) ESTABLISHMENT
OF
GRAZING
DEMONSTRATION.—In
accordance with paragraph (3), the Secretary may establish
2 grazing management demonstration districts at the rec-
ommendation of the grazing lands conservation initiative steer-
ing committee.
(3) PROCEDURE.—
H. R. 2854—133
(A) PROPOSAL.—Within a reasonable time after the
submission of a request of an organization of farmers or
ranchers engaged in grazing, the Secretary shall propose
that a grazing management district be established.
(B) FUNDING.—The terms and conditions of the funding
and operation of the grazing management district shall
be proposed by the producers.
(C) APPROVAL.—The Secretary shall approve the pro-
posal if the Secretary determines that the proposal—
(i) is reasonable;
(ii) will promote sound grazing practices; and
(iii) contains provisions similar to the provisions
contained in the beef promotion and research order
issued under section 4 of the Beef Research and
Information Act (7 U.S.C. 2903) in effect on the date
of enactment of this Act.
(D) AREA INCLUDED.—The area proposed to be included
in a grazing management district shall be determined by
the Secretary on the basis of a petition by farmers or
ranchers.
(E) AUTHORIZATION.—The Secretary may use authority
under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, to operate, on a dem-
onstration basis, a grazing management district.
(F) ACTIVITIES.—The activities of a grazing manage-
ment district shall be scientifically sound activities, as
determined by the Secretary in consultation with a tech-
nical advisory committee composed of ranchers, farmers,
and technical experts.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section—
(1) $20,000,000 for fiscal year 1996;
(2) $40,000,000 for fiscal year 1997; and
(3) $60,000,000 for fiscal year 1998 and each subsequent
fiscal year.
SEC. 387. WILDLIFE HABITAT INCENTIVES PROGRAM.
(a) IN GENERAL.—The Secretary of Agriculture, in consultation
with the State technical committees established under section 1261
of the Food Security Act of 1985 (16 U.S.C. 3861), shall establish
a program under the Natural Resources Conservation Service to
be known as the ‘‘Wildlife Habitat Incentive Program’’.
(b) COST-SHARE PAYMENTS.—Under the program, the Secretary
shall make cost-share payments to landowners to develop upland
wildlife, wetland wildlife, threatened and endangered species, fish,
and other types of wildlife habitat approved by the Secretary.
(c) FUNDING.—To carry out this section, a total of $50,000,000
shall be made available for fiscal years 1996 through 2002 from
funds made available to carry out subchapter B of chapter 1 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3831 et seq.).
SEC. 388. FARMLAND PROTECTION PROGRAM.
(a) IN GENERAL.—The Secretary of Agriculture shall establish
and carry out a farmland protection program under which the
Secretary shall purchase conservation easements or other interests
in not less than 170,000, nor more than 340,000, acres of land
H. R. 2854—134
with prime, unique, or other productive soil that is subject to
a pending offer from a State or local government for the purpose
of protecting topsoil by limiting nonagricultural uses of the land.
(b) CONSERVATION PLAN.—Any highly erodible cropland for
which a conservation easement or other interest is purchased under
this section shall be subject to the requirements of a conservation
plan that requires, at the option of the Secretary, the conversion
of the cropland to less intensive uses.
(c) FUNDING.—The Secretary shall use not more than
$35,000,000 of the funds of the Commodity Credit Corporation
to carry out this section.
SEC. 389. INTERIM MORATORIUM ON BYPASS FLOWS.
(a) MORATORIUM.—There shall be an 18-month moratorium
on any Forest Service decision to require bypass flows or any
other relinquishment of the unimpaired use of a decreed water
right as a condition of renewal or reissuance of a land use authoriza-
tion permit.
(b) LIMITATIONS.—Subsection (a) shall not affect—
(1) obligations or authority of the Secretary of Agriculture
to protect public health and safety; and
(2) obligations or authority under the Endangered Species
Act of 1973 (16 U.S.C. 1531 et seq.), or applicable State law.
(c) RULES OF CONSTRUCTION.—
(1) EXISTING NON-FEDERAL WATER RIGHTS.—Nothing in this
section prevents or inhibits the exercise of the use and operation
of existing non-Federal water rights on or above the National
Forest land that require land use authorization permits from
the Forest Service to access water supply facilities.
(2) RENEWAL
OR
REISSUANCE
OF
EXPIRING
LAND
USE
AUTHORIZATION FOR DECREED WATER RIGHTS.—Nothing in this
section prevents or inhibits the renewal or reissuance of expir-
ing land use authorizations for decreed water rights. The Forest
Service may extend, as needed, any expiring land use authoriza-
tion for such time as is necessary to incorporate the results
of the study authorized by subsection (d).
(d) STUDY OF WATER RIGHTS ACROSS FEDERAL LANDS.—
(1) ESTABLISHMENT.—Not later than 60 days after the date
of enactment of this Act, there shall be established a Water
Rights Task Force to study the subjects described in paragraph
(3).
(2) MEMBERSHIP.—The Task Force shall be composed of
7 members appointed as follows:
(A) 1 member shall be appointed by the Secretary
of Agriculture.
(B) 2 members shall be appointed by the Speaker of
the House of Representatives and 1 member shall be
appointed by the Minority Leader of the House of Rep-
resentatives.
(C) 2 members shall be appointed by the Majority
Leader of the Senate and 1 member shall be appointed
by the Minority Leader of the Senate.
(3) SUBJECTS TO BE STUDIED.—The Task Force shall study
and make recommendations on—
(A) whether Federal water rights should be acquired
for environmental protection on National Forest land;
H. R. 2854—135
(B) measures necessary to protect the free exercise
of non-Federal water rights requiring easements and per-
mits from the Forest Service;
(C) the protection of minimum instream flows for
environmental and watershed management purposes on
National Forest land through purchases or exchanges from
willing sellers in accordance with State law;
(D) the effects of any of the recommendations made
under this paragraph on existing State laws, regulations,
and customs of water usage; and
(E) measures that would be useful in avoiding or resolv-
ing conflicts between the Forest Service’s responsibilities
for natural resource and environmental protection, the pub-
lic interest, and the property rights and interests of water
holders with special use permits for water facilities, includ-
ing the study of the Federal acquisition of water rights,
dispute resolution, mitigation, and compensation.
(4) FINAL REPORT.—As soon as practicable, but not later
than 1 year, after the date of enactment of this Act, the Task
Force shall provide the final report of the Task Force to—
(A) the Secretary of Agriculture;
(B) the Speaker of the House of Representatives;
(C) the President pro tempore of the Senate;
(D) the Chairman of the Committee on Agriculture
of the House of Representatives;
(E) the Chairman of the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
(F) the Chairman of the Committee on Resources of
the House of Representatives; and
(G) the Chairman of the Committee on Energy and
Natural Resources of the Senate.
(5) AUTHORIZATION
OF
FUNDS.—The Secretary of Agri-
culture shall use funds made available for salaries and adminis-
trative expenses of the Department of Agriculture to carry
out this subsection.
SEC. 390. EVERGLADES ECOSYSTEM RESTORATION.
(a) IN GENERAL.—On July 1, 1996, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury
shall provide $200,000,000 to the Secretary of the Interior to carry
out this section.
(b) ENTITLEMENT.—The Secretary of the Interior (referred to
in this section as the ‘‘Secretary’’)—
(1) shall be entitled to receive the funds made available
under subsection (a);
(2) shall accept the funds; and
(3) shall use the funds to—
(A) conduct restoration activities in the Everglades
ecosystem in South Florida, which shall include the acquisi-
tion of real property and interests in real property located
within the Everglades ecosystem; and
(B) fund resource protection and resource maintenance
activities in the Everglades ecosystem.
(c) SAVINGS PROVISION.—Nothing in this subsection precludes
the Secretary from transferring funds to the Army Corps of Engi-
neers, the State of Florida, or the South Florida Water Management
District to carry out subsection (b)(3).
H. R. 2854—136
(d) DEADLINE.—The Secretary shall use the funds made avail-
able under subsection (a) for restoration activities referred to in
subsection (b)(3) not later than December 31, 1999.
(e) REPORT TO CONGRESS.—For each of calendar years 1996
through 1999, the Secretary shall submit an annual report to Con-
gress describing all activities carried out under subsection (b)(3).
(f) SEPARATE
AND
ADDITIONAL
EVERGLADES
RESTORATION
ACCOUNT.—
(1) ESTABLISHMENT.—There is established in the Treasury
a special account (to be known as the ‘‘Everglades Restoration
Account’’), which shall consist of such funds as may be deposited
in the account under paragraph (2). The account shall be sepa-
rate, and in addition to, funds deposited in the Treasury under
subsection (a).
(2) SOURCE OF FUNDS FOR ACCOUNT.—
(A) PROCEEDS FROM SURPLUS PROPERTY.—
(i) IN GENERAL.—Subject to subparagraph (B), the
Administrator shall deposit in the special account all
funds received by the Administrator, on or after the
date of enactment of this Act, from the disposal pursu-
ant to the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 471 et seq.) of surplus
real property located in the State of Florida.
(ii) AVAILABILITY
AND
DISPOSITION
OF
FEDERAL
LAND.—
(I) IDENTIFICATION.—Any Federal real prop-
erty located in the State of Florida (excluding lands
under the administrative jurisdiction of the Sec-
retary that are set aside for conservation purposes)
shall be identified for disposal or exchange under
this subsection and shall be presumed available
for purposes of this subsection unless the head
of the agency controlling the property determines
that there is a compelling program need for any
property identified by the Secretary.
(II) AVAILABILITY.—Property identified by the
Secretary for which there is no demonstrated
compelling program need shall, not later than 90
days after a request by the Secretary, be reported
to the Administrator and shall be made available
to the Administrator who shall consider the prop-
erty to be surplus property for purposes of the
Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 471 et seq.).
(III) PRIORITIZATION
OF
DISPOSITION.—The
Administrator may prioritize the disposition of
property made available under this subparagraph
to permit the property to be sold as quickly as
practicable in a manner that is consistent with
the best interests of the Federal Government.
(B) LIMIT ON TOTAL AMOUNT OF DEPOSITS.—The total
amount of funds deposited in the special account under
subparagraph (A) shall not exceed $100,000,000.
(C) EFFECT ON CLOSURE OF MILITARY INSTALLATIONS.—
Nothing in this section alters the disposition of any pro-
ceeds arising from the disposal of real property pursuant
to a base closure law.
H. R. 2854—137
(3) USE OF SPECIAL ACCOUNT.—Funds in the special account
shall be available to the Secretary until expended under this
paragraph. The Secretary shall use funds in the special account
to assist in the restoration of the Everglades ecosystem in
South Florida through—
(A) subject to paragraph (4), the acquisition of real
property and interests in real property located within the
Everglades ecosystem; and
(B) the funding of resource protection and resource
maintenance activities in the Everglades ecosystem.
(4) STATE CONTRIBUTION.—The Secretary may not expend
any funds from the special account to acquire a parcel of
real property, or an interest in a parcel of real property, under
paragraph (3)(A) unless the Secretary obtains, or has previously
obtained, a contribution from the State of Florida in an amount
equal to not less than 50 percent of the appraised value of
the parcel or interest to be acquired, as determined by the
Secretary.
(5) DEFINITIONS.—In this subsection:
(A) ADMINISTRATOR.—The term ‘‘Administrator’’ means
the Administrator of General Services.
(B) BASE CLOSURE LAW.—The term ‘‘base closure law’’
means each of the following:
(i) The Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101–
510; 10 U.S.C. 2687 note).
(ii) Title II of the Defense Authorization Amend-
ments and Base Closure and Realignment Act (Public
Law 100–526; 10 U.S.C. 2687 note).
(iii) Section 2687 of title 10, United States Code.
(iv) Any other similar law enacted after the date
of enactment of this Act.
(C) EVERGLADES ECOSYSTEM.—The term ‘‘Everglades
ecosystem’’ means the Florida Everglades Restoration area
that extends from the Kissimmee River basin to Florida
Bay.
(D) EXCESS PROPERTY.—The term ‘‘excess property’’ has
the meaning provided in section 3 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 472).
(E) EXECUTIVE AGENCY.—The term ‘‘executive agency’’
has the meaning provided in section 3 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
472).
(F) SPECIAL
ACCOUNT.—The term ‘‘special account’’
means the Everglades Restoration Account established
under paragraph (1).
(G) SURPLUS PROPERTY.—The term ‘‘surplus property’’
has the meaning provided in section 3 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
472).
(g) REPORT TO DETERMINE
THE FEASIBILITY
OF ADDITIONAL
LAND ACQUISITION AND RESTORATION ACTIVITIES.—
(1) IN GENERAL.—The Secretary shall conduct an investiga-
tion to determine what, if any, unreserved and unappropriated
Federal lands (or mineral interests in any such lands) under
the administrative jurisdiction of the Secretary are suitable
H. R. 2854—138
for disposal or exchange for the purpose of conducting restora-
tion activities in the Everglades region.
(2) CONSERVATION LANDS.—No lands under the administra-
tive jurisdiction of the Secretary that are set aside for conserva-
tion purposes shall be identified for disposal or exchange under
this subsection.
(3) FLORIDA.—In carrying out this subsection, the Secretary
shall, to the maximum extent practicable, determine which
lands and mineral interests located within the State of Florida
are suitable for disposal or exchange before making the deter-
mination for eligible lands or interests in other States.
(4) PUBLIC ACCESS.—In carrying out this subsection, the
Secretary shall consider that in disposing of lands, the Sec-
retary shall retain such interest in the lands as may be nec-
essary to ensure that the general public is not precluded from
reasonable access to the lands for purposes of fishing, hunting,
or other recreational uses.
(5) REPORT.—Not later than 1 year after the date of enact-
ment of this Act, the Secretary shall submit a report to the
Committee on Resources of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate
describing the results of the investigation conducted under
this subsection. The report shall describe the specific parcels
identified under this subsection, establish the priorities for
disposal or exchange among the parcels, and estimate the val-
ues of the parcels.
SEC. 391. AGRICULTURAL AIR QUALITY RESEARCH OVERSIGHT.
(a) FINDINGS.—Congress finds that—
(1) various studies have alleged that agriculture is a source
of PM-10 emissions;
(2) many of these studies have often been based on erro-
neous data;
(3) Federal research activities are currently being con-
ducted by the Department of Agriculture to determine the
true extent to which agricultural activities contribute to air
pollution and to determine cost-effective ways in which the
agricultural industry can reduce any pollution that exists; and
(4) any Federal policy recommendations that may be issued
by any Federal agency to address air pollution problems related
to agriculture or any other industrial activity should be based
on sound scientific findings that are subject to adequate peer
review and should take into account economic feasibility.
(b) PURPOSE.—The purpose of this section is to encourage the
Secretary of Agriculture to continue to strengthen vital research
efforts related to agricultural air quality.
(c) OVERSIGHT COORDINATION.—
(1) INTERGOVERNMENTAL
COOPERATION.—The Secretary
shall, to the maximum extent practicable with respect to the
Department of Agriculture and other Federal departments and
agencies, ensure intergovernmental cooperation in research
activities related to agricultural air quality and avoid duplica-
tion of the activities.
(2) CORRECT DATA.—The Secretary shall, to the maximum
extent practicable, ensure that the results of any research
related to agricultural air quality conducted by Federal agencies
H. R. 2854—139
not report erroneous data with respect to agricultural air qual-
ity.
(d) TASK FORCE.—
(1) ESTABLISHMENT.—The Chief of the National Resources
Conservation Service shall establish a task force to address
agricultural air quality issues.
(2) COMPOSITION.—The task force shall be comprised of
employees of the Department of Agriculture, industry represent-
atives, and other experts in the fields of agriculture and air
quality.
(3) DUTIES.—The task force shall advise the Secretary with
respect to the role of the Secretary for providing oversight
and coordination related to agricultural air quality.
TITLE IV—NUTRITION ASSISTANCE
SEC. 401. FOOD STAMP PROGRAM.
(a) DISQUALIFICATION
OF
A
STORE
OR
CONCERN.—Section
12(b)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)(3)(B))
is amended—
(1) by striking the second parenthetical; and
(2) by striking ‘‘; or’’ and inserting the following: ‘‘, including
evidence that—
‘‘(i) the ownership of the store or food concern
was not aware of, did not approve of, did not benefit
from, and was not involved in the conduct of the viola-
tion; and
‘‘(ii)(I) the management of the store or food concern
was not aware of, did not approve of, did not benefit
from, and was not involved in the conduct of the viola-
tion; or
‘‘(II) the management was aware of, approved of,
benefited from, or was involved in the conduct of no
more than 1 previous violation by the store or food
concern; or’’.
(b) EMPLOYMENT AND TRAINING.—Section 16(h)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking
‘‘1995’’ each place it appears and inserting ‘‘2002’’.
(c) AUTHORIZATION OF PILOT PROJECTS.—The last sentence of
section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(A)) is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(d) OUTREACH DEMONSTRATION PROJECTS.—The first sentence
of section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.
2026(j)(1)(A)) is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(e) AUTHORIZATION FOR APPROPRIATIONS.—The first sentence
of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2027(a)(1)) is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
(f) REAUTHORIZATION OF PUERTO RICO NUTRITION ASSISTANCE
PROGRAM.—The first sentence of section 19(a)(1)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking
‘‘$974,000,000’’ and all that follows through ‘‘fiscal year 1995’’ and
inserting ‘‘$1,143,000,000 for fiscal year 1996, $1,174,000,000 for
fiscal year 1997, $1,204,000,000 for fiscal year 1998, $1,236,000,000
for fiscal year 1999, $1,268,000,000 for fiscal year 2000,
$1,301,000,000 for fiscal year 2001, and $1,335,000,000 for fiscal
year 2002’’.
H. R. 2854—140
(g) AMERICAN SAMOA.—The Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.) is amended by adding at the end the following:
‘‘SEC. 24. TERRITORY OF AMERICAN SAMOA.
‘‘Effective October 1, 1995, from amounts made available to
carry out this Act, the Secretary shall pay to the Territory of
American Samoa not more than $5,300,000 for each of fiscal years
1996 through 2002 to finance 100 percent of the expenditures
for the fiscal year for a nutrition assistance program extended
under section 601(c) of Public Law 96–597 (48 U.S.C. 1469d(c)).’’.
(h) ASSISTANCE FOR COMMUNITY FOOD PROJECTS.—The Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) (as amended by subsection
(g)) is amended by adding at the end the following:
‘‘SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
‘‘(a) DEFINITION OF COMMUNITY FOOD PROJECTS.—In this sec-
tion, the term ‘community food project’ means a community-based
project that requires a 1-time infusion of Federal assistance to
become self-sustaining and that is designed to—
‘‘(1) meet the food needs of low-income people;
‘‘(2) increase the self-reliance of communities in providing
for their own food needs; and
‘‘(3) promote comprehensive responses to local food, farm,
and nutrition issues.
‘‘(b) AUTHORITY TO PROVIDE ASSISTANCE.—
‘‘(1) IN GENERAL.—From amounts made available to carry
out this Act, the Secretary may make grants to assist eligible
private nonprofit entities to establish and carry out community
food projects.
‘‘(2) LIMITATION ON GRANTS.—The total amount of funds
provided as grants under this section may not exceed—
‘‘(A) $1,000,000 for fiscal year 1996; and
‘‘(B) $2,500,000 for each of fiscal years 1997 through
2002.
‘‘(c) ELIGIBLE ENTITIES.—To be eligible for a grant under sub-
section (b), a private nonprofit entity must—
‘‘(1) have experience in the area of—
‘‘(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the develop-
ment of new markets in low-income communities for agri-
cultural producers; or
‘‘(B) job training and business development activities
for food-related activities in low-income communities;
‘‘(2) demonstrate competency to implement a project, pro-
vide fiscal accountability, collect data, and prepare reports and
other necessary documentation; and
‘‘(3) demonstrate a willingness to share information with
researchers, practitioners, and other interested parties.
‘‘(d) PREFERENCE FOR CERTAIN PROJECTS.—In selecting commu-
nity food projects to receive assistance under subsection (b), the
Secretary shall give a preference to projects designed to—
‘‘(1) develop linkages between 2 or more sectors of the
food system;
‘‘(2) support the development of entrepreneurial projects;
‘‘(3) develop innovative linkages between the for-profit and
nonprofit food sectors; or
H. R. 2854—141
‘‘(4) encourage long-term planning activities and multi-sys-
tem, interagency approaches.
‘‘(e) MATCHING FUNDS REQUIREMENTS.—
‘‘(1) REQUIREMENTS.—The Federal share of the cost of
establishing or carrying out a community food project that
receives assistance under subsection (b) may not exceed 50
percent of the cost of the project during the term of the grant.
‘‘(2) CALCULATION.—In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a pay-
ment in cash or in kind, fairly evaluated, including facilities,
equipment, or services.
‘‘(3) SOURCES.—An entity may provide for the non-Federal
share through State government, local government, or private
sources.
‘‘(f) TERM OF GRANT.—
‘‘(1) SINGLE
GRANT.—A community food project may be
supported by only a single grant under subsection (b).
‘‘(2) TERM.—The term of a grant under subsection (b) may
not exceed 3 years.
‘‘(g) TECHNICAL ASSISTANCE AND RELATED INFORMATION.—
‘‘(1) TECHNICAL ASSISTANCE.—In carrying out this section,
the Secretary may provide technical assistance regarding
community food projects, processes, and development to an
entity seeking the assistance.
‘‘(2) SHARING INFORMATION.—
‘‘(A) IN GENERAL.—The Secretary may provide for the
sharing of information concerning community food projects
and issues among and between government, private for-
profit and nonprofit groups, and the public through publica-
tions, conferences, and other appropriate forums.
‘‘(B) OTHER INTERESTED PARTIES.—The Secretary may
share information concerning community food projects with
researchers, practitioners, and other interested parties.
‘‘(h) EVALUATION.—
‘‘(1) IN
GENERAL.—The Secretary shall provide for the
evaluation of the success of community food projects supported
using funds under this section.
‘‘(2) REPORT.—Not later than January 30, 2002, the Sec-
retary shall submit a report to Congress regarding the results
of the evaluation.’’.
SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLE-
MENTAL FOOD PROGRAM.
(a) REAUTHORIZATION.—The first sentence of section 4(a) of
the Agriculture and Consumer Protection Act of 1973 (Public Law
93–86; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
(b) FUNDING.—Section 5 of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–86; 7 U.S.C. 612c note)
is amended—
(1) in subsection (a)(2), by striking ‘‘1995’’ and inserting
‘‘2002’’;
(2) in subsection (d)(2), by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(3) by adding at the end the following:
H. R. 2854—142
‘‘(l) CARRIED-OVER FUNDS.—Not more than 20 percent of any
commodity supplemental food program food funds carried over
under this section shall be available for administrative expenses
of the program.’’.
SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) REAUTHORIZATION.—The first sentence of section 204(a)(1)
of the Emergency Food Assistance Act of 1983 (Public Law 98–
8; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’ and inserting
‘‘2002’’.
(b) PROGRAM TERMINATION.—Section 212 of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note)
is amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(c) REQUIRED PURCHASES OF COMMODITIES.—Section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended—
(1) in the first sentence of subsection (a), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(2) in subsection (e), by striking ‘‘1995’’ each place it
appears and inserting ‘‘2002’’.
SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.
Section 110 of the Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C. 612c note) is amended—
(1) in the first sentence of subsection (a), by striking ‘‘1995’’
and inserting ‘‘2002’’; and
(2) in subsection (c)(2)—
(A) in the paragraph heading, by striking ‘‘1992
THROUGH 1995’’ and inserting ‘‘SUBSEQUENT’’; and
(B) by striking ‘‘1995’’ each place it appears and insert-
ing ‘‘2002’’.
SEC. 405. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking
‘‘1995’’ and inserting ‘‘2002’’.
TITLE V—AGRICULTURAL PROMOTION
Subtitle A—Commodity Promotion and
Evaluation
SEC. 501. COMMODITY PROMOTION AND EVALUATION.
(a) COMMODITY PROMOTION LAW DEFINED.—In this section, the
term ‘‘commodity promotion law’’ means a Federal law that provides
for the establishment and operation of a promotion program regard-
ing an agricultural commodity that includes a combination of pro-
motion, research, industry information, or consumer information
activities, is funded by mandatory assessments on producers or
processors, and is designed to maintain or expand markets and
uses for the commodity (as determined by the Secretary). The
term includes—
(1) the marketing promotion provisions under section
8c(6)(I) of the Agricultural Adjustment Act (7 U.S.C. 608c(6)(I)),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937;
H. R. 2854—143
(2) Public Law 89–502 (7 U.S.C. 2101 et seq.);
(3) title III of Public Law 91–670 (7 U.S.C. 2611 et seq.);
(4) Public Law 93–428 (7 U.S.C. 2701 et seq.);
(5) Public Law 94–294 (7 U.S.C. 2901 et seq.);
(6) subtitle B of title I of Public Law 98–180 (7 U.S.C.
4501 et seq.);
(7) Public Law 98–590 (7 U.S.C. 4601 et seq.);
(8) subtitle B of title XVI of Public Law 99–198 (7 U.S.C.
4801 et seq.);
(9) subtitle C of title XVI of Public Law 99–198 (7 U.S.C.
4901 et seq.);
(10) subtitle B of title XIX of Public Law 101–624 (7 U.S.C.
6101 et seq.);
(11) subtitle E of title XIX of Public Law 101–624 (7 U.S.C.
6301 et seq.);
(12) subtitle H of title XIX of Public Law 101–624 (7
U.S.C. 6401 et seq.);
(13) Public Law 103–190 (7 U.S.C. 6801 et seq.);
(14) Public Law 103–407 (7 U.S.C. 7101 et seq.);
(15) subtitle B;
(16) subtitle C;
(17) subtitle D; or
(18) subtitle E.
(b) FINDINGS.—Congress finds the following:
(1) It is in the national public interest and vital to the
welfare of the agricultural economy of the United States to
maintain and expand existing markets and develop new mar-
kets and uses for agricultural commodities through industry-
funded, Government-supervised, generic commodity promotion
programs established under commodity promotion laws.
(2) These generic commodity promotion programs, funded
by the agricultural producers or processors who most directly
reap the benefits of the programs and supervised by the Sec-
retary of Agriculture, provide a unique opportunity for produc-
ers and processors to inform consumers about their products.
(3) The central congressional purpose underlying each
commodity promotion law has always been to maintain and
expand markets for the agricultural commodity covered by the
law, rather than to maintain or expand the share of those
markets held by any individual producer or processor.
(4) The commodity promotion laws were neither designed
nor intended to prohibit or restrict, and the promotion programs
established and funded pursuant to these laws do not prohibit
or restrict, individual advertising or promotion of the covered
commodities by any producer, processor, or group of producers
or processors.
(5) It has never been the intent of Congress for the generic
commodity promotion programs established and funded by the
commodity promotion laws to replace the individual advertising
and promotion efforts of producers or processors.
(6) An individual producer’s or processor’s own advertising
initiatives are typically designed to increase the share of the
market held by that producer or processor rather than to
increase or expand the overall size of the market.
(7) In contrast, a generic commodity promotion program
is intended and designed to maintain or increase the overall
demand for the agricultural commodity covered by the program
H. R. 2854—144
and increase the size of the market for that commodity, often
by utilizing promotion methods and techniques that individual
producers and processors typically are unable, or have no incen-
tive, to employ.
(8) The commodity promotion laws establish promotion pro-
grams that operate as ‘‘self-help’’ mechanisms for producers
and processors to fund generic promotions for covered commod-
ities which, under the required supervision and oversight of
the Secretary of Agriculture—
(A) further specific national governmental goals, as
established by Congress; and
(B) produce nonideological and commercial communica-
tion the purpose of which is to further the governmental
policy and objective of maintaining and expanding the mar-
kets for the covered commodities.
(9) While some commodity promotion laws grant a producer
or processor the option of crediting individual advertising con-
ducted by the producer or processor for all or a portion of
the producer’s or processor’s marketing promotion assessments,
all promotion programs established under the commodity pro-
motion laws, both those programs that permit credit for individ-
ual advertising and those programs that do not contain such
provisions, are very narrowly tailored to fulfill the congressional
purposes of the commodity promotion laws without impairing
or infringing the legal or constitutional rights of any individual
producer or processor.
(10) These generic commodity promotion programs are of
particular benefit to small producers who often lack the
resources or market power to advertise on their own and who
are otherwise often unable to benefit from the economies of
scale available in promotion and advertising.
(11) Periodic independent evaluation of the effectiveness
of these generic commodity promotion programs will assist Con-
gress and the Secretary of Agriculture in ensuring that the
objectives of the programs are met.
(c) 
INDEPENDENT
EVALUATION
OF
PROMOTION
PROGRAM
EFFECTIVENESS.—Except as otherwise provided by law, each
commodity board established under the supervision and oversight
of the Secretary of Agriculture pursuant to a commodity promotion
law shall, not less often than every 5 years, authorize and fund,
from funds otherwise available to the board, an independent evalua-
tion of the effectiveness of the generic commodity promotion pro-
grams and other programs conducted by the board pursuant to
a commodity promotion law. The board shall submit to the Sec-
retary, and make available to the public, the results of each periodic
independent evaluation conducted under this subsection.
(d) ADMINISTRATIVE COSTS.—The Secretary shall annually pro-
vide to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate information on administrative expenses on programs
established under commodity promotion laws.
H. R. 2854—145
Subtitle B—Issuance of Orders for Pro-
motion, Research, and Information Ac-
tivities Regarding Agricultural Commod-
ities
SEC. 511. SHORT TITLE.
This subtitle may be cited as the ‘‘Commodity Promotion,
Research, and Information Act of 1996’’.
SEC. 512. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) The production of agricultural commodities plays a
significant role in the economy of the United States. Thousands
of producers in the United States are involved in the production
of agricultural commodities, and such commodities are
consumed by millions of people throughout the United States
and foreign countries.
(2) Agricultural commodities must be of high quality, read-
ily available, handled properly, and marketed efficiently to
ensure that consumers have an adequate supply.
(3) The maintenance and expansion of existing markets
and the development of new markets for agricultural commod-
ities through generic commodity promotion, research, and
information programs are vital to the welfare of persons
engaged in the production, marketing, and consumption of such
commodities, as well as to the general economy of the United
States.
(4) Generic promotion, research, and information activities
for agricultural commodities play a unique role in advancing
the demand for such commodities, since such activities increase
the total market for a product to the benefit of consumers
and all producers. These generic activities complement branded
advertising initiatives, which are aimed at increasing the mar-
ket share of individual competitors, and are of particular benefit
to small producers who lack the resources or market power
to advertise on their own. These generic activities do not impede
the branded advertising efforts of individual firms, but instead
increase general market demand for an agricultural commodity
using methods that individual companies do not have the incen-
tive to employ.
(5) Generic promotion, research, and information activities
for agricultural commodities, paid by the producers and others
in the industry who reap the benefits of such activities, provide
a unique opportunity for producers to inform consumers about
a particular agricultural commodity.
(6) It is important to ensure that generic promotion,
research, and information activities for agricultural commod-
ities be carried out in an effective and coordinated manner
designed to strengthen the position of the commodities in the
marketplace and to maintain and expand their markets and
uses. Independent evaluation of the effectiveness of the generic
promotion activities of these programs will assist the Secretary
of Agriculture and Congress in ensuring that these objectives
are met.