to conservation of the enrolled land, as determined 
by the Secretary.’’. 
(c) 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.— 
‘‘(1) IN GENERAL.—The Secretary may main-
tain in the conservation reserve at any 1 time, not 
more than— 
‘‘(A) during fiscal year 2012, 30,000,000 
acres; 
‘‘(B) during fiscal year 2013, 26,000,000 
acres; and 
‘‘(C) during each of fiscal years 2014 
through 2017, 24,000,000 acres. 
‘‘(2) TRANSFER OF ENROLLMENT.—The Sec-
retary may transfer enrolled acre allowance from the 
conservation reserve program to the easement bene-
fits program established under subchapter C.’’. 
(d) 
CONSERVATION
PRIORITY
AREAS.—Section 
1231(f)(1) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)(1)) is amended by striking ‘‘areas of the Chesa-
peake Bay Region, the Great Lakes Region, the Long Is-
land Sound Region, and other’’. 
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SEC. 2002. PILOT PROGRAM FOR ENROLLMENT OF WET-
LAND AND BUFFER ACREAGE IN CONSERVA-
TION RESERVE. 
Section 1231B of the Food Security Act of 1985 (16 
U.S.C. 3831b) is repealed. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
Section 1232(a)(8)(C) of the Food Security Act of 
1985 (16 U.S.C. 3832(a)(8)(C)) is amended by striking 
‘‘for the control of invasive species’’. 
SEC. 2004. PAYMENTS. 
Section 1234 of the Food Security Act of 1985 (16 
U.S.C. 3834) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘not 
more than’’ before ‘‘50 percent’’; 
(B) in paragraph (3)(B)(i), by inserting 
‘‘not more than’’ before ‘‘50 percent’’; 
(C) by redesignating paragraph (5) as 
paragraph (6); and 
(D) by inserting after paragraph (4) the 
following: 
‘‘(5) PRESCRIBED BURNING.—Notwithstanding 
any other provision of this section, in making cost- 
sharing payments to an owner or operator under a 
contract entered into under this subchapter, the Sec-
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retary shall pay not more than 75 percent of the 
cost of prescribed burning.’’; and 
(2) in subsection (c)(5), by adding at the end 
the following: 
‘‘(C) REVIEW REQUIRED.—The Secretary 
shall periodically review the competitiveness of 
rental rates for land that— 
‘‘(i) 
provides 
substantial 
environ-
mental benefits consistent with the pur-
poses of this subchapter; 
‘‘(ii) provides critical habitat to spe-
cies of concern; or 
‘‘(iii) meets other ecological priorities, 
as determined by the Secretary.’’. 
SEC. 2005. CONTRACTS. 
Section 1235 of the Food Security Act of 1985 (16 
U.S.C. 3835) is amended— 
(1) in subsection (a)(1)— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
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‘‘(E) the new ownership was acquired by 
the sibling, parent, child, or grandchild of the 
previous owner.’’; and 
(2) in subsection (f)(1)(D), by striking ‘‘con-
servation stewardship program or the environmental 
quality incentives program’’ and inserting ‘‘working 
land program’’. 
SEC. 2006. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(B), by inserting ‘‘not 
more than’’ before ‘‘50’’; 
(B) striking ‘‘(1) IN GENERAL.—The Sec-
retary’’ and inserting the following: 
‘‘(1) NOVEMBER 28, 1990.— 
‘‘(A) IN GENERAL.—The Secretary’’; 
(C) by redesignating subparagraphs (A) 
and (B) of paragraph (2) as clauses (i) and (ii), 
respectively, and indenting appropriately; 
(D) by redesignating paragraph (2) as sub-
paragraph (B) and indenting appropriately; and 
(E) by adding at the end the following: 
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‘‘(2) OCTOBER
1, 2011.—The Secretary shall 
permit an owner or operator that has entered into 
a contract under this subchapter that is in effect on 
October 1, 2011, to convert areas of highly erodible 
cropland that are subject to the contract, and that 
are devoted to vegetative cover, from that use to for-
est land if— 
‘‘(A) the areas are prior converted forest 
land; 
‘‘(B) the owner or operator of the areas 
enters into an agreement to provide the Sec-
retary with a long-term or permanent easement 
under the easement benefits program under 
subchapter C covering the areas; 
‘‘(C) there is a high probability that the 
prior converted area can be successfully re-
stored to forest land status; and 
‘‘(D) the restoration of the areas otherwise 
meets the requirements the easement benefits 
program.’’; 
(2) in subsection (b), by striking ‘‘November 
28, 1990’’ and inserting ‘‘October 1, 2011’’; and 
(3) by adding at the end the following: 
‘‘(e) EARLY CONTRACT OPT-OUT.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
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‘‘(A) make available a no-penalty early 
contract opt-out for not less than 8,000,000 
acres enrolled under contracts in existence on 
the date of enactment of this subsection; 
‘‘(B) not later than 1 year after the date 
of enactment of this subsection, ensure that not 
less than 1⁄2 of the required acreage has been 
made available to be opted-out of the conserva-
tion reserve program; 
‘‘(C) not later than 2 years after the date 
of enactment of this subsection, ensure that the 
entire amount of required acreage has been 
made available to opt-out; and 
‘‘(D) terminate a contract entered into 
with an owner or operator offered an early opt- 
out under this subchapter if the owner or oper-
ator agrees to the termination. 
‘‘(2) CONSIDERATIONS.—In determining land to 
offer for opt-out under this subsection, the Secretary 
shall— 
‘‘(A) make available for opt-out those acres 
offering the least environmental benefit, as de-
termined by the Secretary; 
‘‘(B) consider the need to protect critical 
habitat (including nesting areas for birds); and 
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‘‘(C) maintain in the conservation reserve 
land of high environmental value (including 
wetland), as determined by the Secretary, and 
including— 
‘‘(i) riparian buffers; 
‘‘(ii) wildlife habitat buffers; 
‘‘(iii) wetland buffers; 
‘‘(iv) filter strips; 
‘‘(v) grass waterways; 
‘‘(vi) wetland restoration areas; 
‘‘(vii) shelterbelts; 
‘‘(viii) living snow fences; 
‘‘(ix) contour grass strips; 
‘‘(x) land with a high erodibility index; 
‘‘(xi) salt-tolerant vegetation; and 
‘‘(xii) shallow-water areas for wildlife. 
‘‘(3) SUBDIVISION.—In carrying out this sub-
section, the Secretary may subdivide leased acres en-
rolled in the conservation reserve under the same 
contract. 
‘‘(4) CONDITIONS.— 
‘‘(A) COMMODITY
PRODUCTION.—If land 
that was subject to a contract under this sub-
chapter is converted to production of an agri-
cultural commodity through the opt-out under 
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this subsection, the land shall be subject to a 
conservation plan determined by the Secretary 
in coordination with the State technical com-
mittee for the duration of what would have been 
the full term of the conservation reserve con-
tract of the land, if not for opt-out. 
‘‘(B) 
GRAZING
AND
MANAGED
HAR-
VESTING.—If land that was subject to a con-
tract under this subchapter is converted to 
grazing and managed harvesting through the 
opt-out under this subsection, the land shall be 
subject to environmental management criteria 
pursuant section 1232(a)(8) for the duration of 
what would have been the full term of the con-
servation reserve contract of the land, if not for 
opt-out. 
‘‘(C) TECHNICAL ASSISTANCE.—The Sec-
retary shall make available conservation tech-
nical assistance to owners and operators that 
opt-out of the conservation reserve under this 
subsection. 
‘‘(5) EFFECTIVE DATE.—Contract termination 
under the opt-out shall become effective 60 days 
after the date on which the owner or operator ac-
cepts the opt-off offer of the Secretary. 
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‘‘(6) PRORATED RENTAL PAYMENT.—If a con-
tract entered into under this subchapter is termi-
nated under this subsection before the end of the fis-
cal year for which a rental payment is due, the Sec-
retary shall provide a prorated rental payment cov-
ering the portion of the fiscal year during which the 
contract was in effect.’’. 
Subtitle B—Easement Benefits 
Program 
SEC. 2101. EASEMENT BENEFITS PROGRAM. 
(a) IN GENERAL.—Title XII of the Food Security 
Act of 1985 (16 U.S.C. 3801 et seq.) is amended— 
(1) by striking subchapters C and D of chapter 
2 of subtitle D (16 U.S.C. 3838h et seq.); and 
(2) by striking subchapter C of chapter 1 of 
subtitle D (16 U.S.C. 3837 et seq.) and inserting 
the following: 
‘‘Subchapter C—Easement Benefits Program 
‘‘SEC. 1237. EASEMENT BENEFITS PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an easement benefits program (referred to in this sub-
chapter as the ‘program’)— 
‘‘(1) to protect land (including wildlife re-
sources of the land) and water; and 
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‘‘(2) to address issues raised by State, regional, 
and national conservation initiatives. 
‘‘(b) PURPOSES.— 
‘‘(1) IN GENERAL.—The purposes of the pro-
gram are— 
‘‘(A) to restore, enhance, conserve, and 
protect land (including wildlife resources of the 
land) and water; 
‘‘(B) to protect vulnerable and ecologically 
important land; 
‘‘(C) to restore, protect, and enhance wet-
land and grassland; 
‘‘(D) to promote wildlife habitat; 
‘‘(E) to protect the agricultural use and re-
lated conservation values of prime and other 
productive agricultural land by limiting the 
nonagricultural uses of the land; 
‘‘(F) to restore and enhance forest eco-
systems, including the recovery of threatened 
and endangered species and improving biodiver-
sity; 
‘‘(G) to provide assistance to owners to en-
sure the economic use of enrolled land by own-
ers consistent with long-term conservation func-
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tions and values, including wildlife resources of 
the land; and 
‘‘(H) to address issues of restoration, con-
servation, and protection of land (including 
wildlife resources of the land) and water raised 
by State, regional, and national conservation 
priorities. 
‘‘(2) STATE
COORDINATION.—The Secretary 
shall give priority consideration to conservation 
needs identified by State technical committees estab-
lished under section 1261. 
‘‘(c) EXISTING EASEMENTS.— 
‘‘(1) IN GENERAL.—Any easement or interest 
in land enrolled as of the date of enactment of the 
Rural Economic Farm and Ranch Sustainability and 
Hunger Act of 2011 in 1 of the programs described 
in paragraph (2) shall be considered enrolled in the 
easement benefits program under this subchapter. 
‘‘(2) AFFECTED PROGRAMS.—The programs de-
scribed in this paragraph are as the programs were 
authorized on the day before the date of enactment 
of the Rural Economic Farm and Ranch Sustain-
ability and Hunger Act of 2011— 
‘‘(A) the wetlands reserve program estab-
lished under this subchapter; 
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‘‘(B) the grassland reserve program estab-
lished under subchapter D of chapter 2; 
‘‘(C) the farmland protection program es-
tablished under subchapter C of chapter 2; and 
‘‘(D) the healthy forests reserve program 
established under section 501 of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 
6571). 
‘‘SEC. 1237A. EASEMENTS AND 30-YEAR CONTRACTS. 
‘‘(a) ENROLLMENT.— 
‘‘(1) IN
GENERAL.—Lands may be enrolled 
under this subchapter through the submission of ap-
plications under a competitive procedure established 
by the Secretary. 
‘‘(2) METHODS OF ENROLLMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
enroll acreage into the program through the use 
of— 
‘‘(i) permanent easements; and 
‘‘(ii) 30-year easements, or in a State 
that imposes a maximum duration for 
easements, easements for the maximum 
duration allowed under State law (referred 
to as ‘nonpermanent easements’). 
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‘‘(B) 
ACREAGE
OWNED
BY
INDIAN 
TRIBES.—In the case of acreage owned by an 
Indian tribe, the Secretary may also enroll acre-
age into the program through the use of a 30- 
year contract (the value of which shall be equiv-
alent to the value of a 30-year easement). 
‘‘(3) ENROLLMENT
OF
CONSERVATION
RE-
SERVE LAND.— 
‘‘(A) TRANSFER FROM THE CONSERVATION 
RESERVE PROGRAM.—The Secretary may termi-
nate or modify an existing contract entered into 
the conservation reserve program under section 
1231 if eligible land that is subject to the con-
tract is transferred into the program estab-
lished by this subchapter. 
‘‘(B) PRIORITY.—On expiration of a con-
tract under the conservation reserve program 
under subchapter B, the Secretary shall give 
priority for enrollment in the program to land 
previously enrolled in the conservation reserve 
program if— 
‘‘(i) the land is eligible land under 
subsection (b); and 
‘‘(ii) the Secretary determines that 
the land is of high ecological value. 
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‘‘(C) SPECIAL FUNDING POOL.— 
‘‘(i) IN
GENERAL.—Of the funds 
made available for the program for each of 
the 2013 through 2017 fiscal years, the 
Secretary shall reserve 10 percent of the 
funds to ensure an adequate source of 
funds and acres to give priority for enroll-
ment of land identified under subpara-
graph (B). 
‘‘(ii) REOBLIGATION.—Funds not ob-
ligated under clause (i) by April 1 of each 
year may be available for use for other 
purposes of the program. 
‘‘(b) ELIGIBLE LAND.— 
‘‘(1) ENROLLMENT.— 
‘‘(A) IN GENERAL.—Eligible land shall be 
enrolled into the program subject to appropriate 
program requirements depending on the re-
source objectives sought to be achieved through 
the easement or 30-year contract, as deter-
mined by the Secretary. 
‘‘(B) ELIGIBILITY.—Private or tribal land 
shall be eligible to be enrolled into the program 
if the Secretary determines that the land— 
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‘‘(i) maximizes the purpose of this 
subchapter; 
‘‘(ii) is enrolled in the conservation re-
serve program; or 
‘‘(iii) in the case of land enrolled for 
restoration purposes, the likelihood of the 
successful restoration of the land and the 
resultant values merit the inclusion of the 
land in the program taking into consider-
ation the cost of the restoration. 
‘‘(2) WETLAND.— 
‘‘(A) IN GENERAL.—Land shall be eligible 
to be enrolled into the program if the Secretary 
determines that the land is— 
‘‘(i) farmed wetland or converted wet-
land, together with the adjacent land that 
is functionally dependent on the wetland, 
except that converted wetland with respect 
to which the conversion was not com-
menced prior to December 23, 1985, shall 
not be eligible to be enrolled in the pro-
gram; 
‘‘(ii) cropland or grassland that was 
used for agricultural production prior to 
flooding from the natural overflow of a 
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closed basin lake or pothole, as determined 
by the Secretary, together (if practicable) 
with the adjacent land that is functionally 
dependent on the cropland or grassland; 
‘‘(iii) farmed wetland and adjoining 
land, enrolled in the conservation reserve, 
with the highest wetland functions and val-
ues, and that is likely to return to produc-
tion after the land is not enrolled in the 
conservation reserve; 
‘‘(iv) other wetland (such as filter 
strips and vernal pools) of an owner that 
would not otherwise be eligible if the Sec-
retary determines that the inclusion of the 
wetland in the easement would signifi-
cantly add to the functional value of the 
easement; or 
‘‘(v) a riparian area. 
‘‘(B) RESTORATION
AGREEMENT.—Land 
described in subparagraph (A) that is enrolled 
in the program shall be subject to a restoration 
agreement that provides the opportunity for the 
restoration and enhancement of the enrolled 
land. 
‘‘(3) GRASSLAND.— 
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‘‘(A) IN GENERAL.—Land shall be eligible 
to be enrolled into the program if the Secretary 
determines that the land is at risk of conversion 
to nongrazing uses and is— 
‘‘(i) grassland, land that contains 
forbs, or shrubland (including improved 
rangeland and pastureland), including land 
for which grazing is the predominant use; 
or 
‘‘(ii) located in an area that has been 
historically dominated by grassland, forbs, 
or shrubland, and the land— 
‘‘(I) could provide habitat for 
animal or plant populations of signifi-
cant ecological value if the land— 
‘‘(aa) is retained in the cur-
rent use of the land; or 
‘‘(bb) is restored to a nat-
ural condition; or 
‘‘(II) contains historical or ar-
chaeological resources. 
‘‘(B) RESTORATION
AGREEMENT.—Land 
described in subparagraph (A) that is enrolled 
in the program shall be subject to a restoration 
agreement that provides the opportunity for the 
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100 
restoration and enhancement of the enrolled 
land. 
‘‘(4) FOREST LAND.— 
‘‘(A) IN GENERAL.—Land shall be eligible 
to be enrolled into the program if the Secretary 
determines that the land is land, the enrollment 
of which— 
‘‘(i) will restore and conserve forest 
land, improve biodiversity, or conserve land 
from the conservation reserve program 
that is being restored to forest land; 
‘‘(ii) will restore, enhance, or other-
wise measurably increase the likelihood of 
recovery of a species listed as endangered 
or threatened under section 4 of the En-
dangered Species Act of 1973 (16 U.S.C. 
1533); or 
‘‘(iii) will restore, enhance, or other-
wise measurably improve the well-being of 
a species that— 
‘‘(I) is not listed as endangered 
or threatened under section 4 of the 
Endangered Species Act of 1973 (16 
U.S.C. 1533); but 
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101 
‘‘(II) is candidates for such list-
ing, State-listed species, or special 
concern species. 
‘‘(B) RESTORATION
AGREEMENT.—Land 
described in subparagraph (A) that is enrolled 
in the program shall be subject to a restoration 
agreement that provides the opportunity for the 
restoration and enhancement of the enrolled 
land. 
‘‘(5) PRIME AND PRODUCTIVE AGRICULTURAL 
LAND.—Land shall be eligible to be enrolled into the 
program if the Secretary determines that the land is 
at risk of conversion to nonagricultural uses and— 
‘‘(A) has prime, unique, or other produc-
tive soil; 
‘‘(B) contains historical or archaeological 
resources; or 
‘‘(C) the protection of the land will further 
a State or local policy consistent with the pur-
poses of the program. 
‘‘(c) OTHER ELIGIBLE LAND.— 
‘‘(1) IN GENERAL.—The Secretary may enroll 
other land of the owner that would not otherwise be 
eligible if the land is determined by the Secretary to 
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102 
be necessary for the efficient administration of the 
30-year contract or easement under the program. 
‘‘(2) TYPE OF LAND.—Land enrolled under this 
subsection may include small areas of land as de-
fined by the Secretary, such as riparian zones, filter 
strips, buffers, fence lines, and other incidental land. 
‘‘(d) LEVERAGING NON-FEDERAL INVESTMENT.— 
The Secretary may enter into 1 or more agreements with 
a State (including a political subdivision or agency of a 
State), nongovernmental organization, or Indian tribe to 
carry out a special enhancement program that the Sec-
retary determines would advance the purposes of the pro-
gram. 
‘‘SEC. 1237B. DUTIES OF OWNERS. 
‘‘(a) EASEMENTS.—To be eligible to enroll eligible 
land in the program under an easement, the owner of the 
land shall agree— 
‘‘(1) to grant an easement to the Secretary; 
‘‘(2) to create and record an appropriate deed 
restriction in accordance with applicable State law to 
reflect the easement; 
‘‘(3) to provide a written statement of consent 
to the easement signed by persons holding a security 
interest or any vested interest in the land; 
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103 
‘‘(4) to comply with the terms of the easement 
and related agreements; 
‘‘(5) to comply with the easement implement 
plan, as approved by the Secretary, which may be 
modified upon mutual agreement of the parties if 
the Secretary authorizes compatible uses; and 
‘‘(6) to the permanent retirement of any exist-
ing cropland base and allotment history for the land 
under any program administered by the Secretary, 
unless the purpose of the particular easement is lim-
ited to the prevention of the conversion of prime and 
productive agricultural land to nonagricultural uses. 
‘‘(b) RESTORATION AGREEMENTS.— 
‘‘(1) IN GENERAL.—To be eligible for financial 
assistance to restore eligible land subject to a 30- 
year contract or an easement under the program, 
the owner of the land shall agree to comply with the 
terms of a restoration agreement. 
‘‘(2) TYPE
OF
AGREEMENT.—A restoration 
agreement may be— 
‘‘(A) a cost-share agreement with the 
owner; 
‘‘(B) a cooperative agreement with an 
agency or organization with restoration exper-
tise; or 
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104 
‘‘(C) a contract with a vendor. 
‘‘(3) TERMS AND CONDITIONS.—The Secretary 
shall prescribe the terms and conditions of a restora-
tion agreement by which eligible land that is subject 
to a 30-year contract or easement under the pro-
gram shall be restored. 
‘‘(4) DUTIES.—The restoration agreement shall 
describe the respective duties of the parties to the 
agreement, including the Federal share of restora-
tion payments and technical assistance. 
‘‘(c) TERMS AND CONDITIONS APPLICABLE TO EASE-
MENTS AND 30-YEAR CONTRACTS.— 
‘‘(1) RESERVED RIGHTS.— 
‘‘(A) IN GENERAL.—An easement or 30- 
year contract entered into under the program 
shall provide to the Secretary control of the 
surface rights of the land while identifying 
rights reserved to the owner for specified usages 
consistent with the purposes of the particular 
enrollment so as— 
‘‘(i) to maximize conservation benefits 
(including wildlife habitat) per dollar spent 
across the program; and 
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‘‘(ii) to allow the owner uses of the 
land that are consistent with the purposes 
for which the land is enrolled. 
‘‘(B) 
LIMITATIONS
ON
ACTIVITIES.— 
Rights reserved to the owner shall be consistent 
with the wetland, grassland, forest land, or pro-
ductive land purposes for which the land is en-
rolled. 
‘‘(2) EASEMENT CONSERVATION PLAN.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop an easement conservation plan for each 
easement or 30-year contract enrolled in the 
program that will identify how land enrolled in 
the program will be restored, if applicable, and 
managed. 
‘‘(B) MODIFICATION.—An easement con-
servation plan shall be modified in response to 
changing resource conditions to ensure that the 
purposes of the program are achieved. 
‘‘(C) LOCAL AND STATE INVOLVEMENT.— 
An easement conservation plan, including any 
compatible use that may be authorized for the 
owner under the program, shall be made 
through the local Natural Resources Conserva-
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tion Service representative, in coordination with 
the State technical committee. 
‘‘(D) 
PERMISSIBLE
ACTIVITIES.—Con-
sistent with paragraph (3), an easement con-
servation plan shall identify the following activi-
ties as permissible: 
‘‘(i) GRASSLAND.—In the case of 
grassland, an easement conservation plan 
shall permit— 
‘‘(I) common grazing practices, 
including maintenance and necessary 
cultural practices, on the land that is 
consistent with maintaining the viabil-
ity of grassland, forb, and shrub spe-
cies appropriate to that locality; 
‘‘(II) haying, mowing, or har-
vesting for seed production or bio-
mass, subject to appropriate restric-
tions during the nesting season for 
birds in the local area, consistent with 
Federal or State law and in coordina-
tion with the State technical com-
mittee, as determined by the Sec-
retary; 
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‘‘(III) fire presuppression, reha-
bilitation, and construction of fire 
breaks; and 
‘‘(IV) grazing-related activities, 
such as fencing and livestock water-
ing. 
‘‘(ii) WETLAND.—In the case of wet-
land, an easement conservation plan shall 
permit repairs, improvements, and inspec-
tions of the land that are necessary to 
maintain existing public drainage systems 
if the land is subsequently restored to the 
condition required by the terms of the 
easement. 
‘‘(iii) ALL ENROLLED LAND.— 
‘‘(I) IN GENERAL.—In the case 
of all enrolled land, the easement con-
servation 
plan 
shall 
permit 
the 
owner— 
‘‘(aa) to conduct any activi-
ties that are inherent and nec-
essary to rights that are reserved 
to the owner under the terms of 
the easement or 30-year contract 
and have been identified as com-
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patible use in the easement con-
servation program; 
‘‘(bb) to control public ac-
cess; and 
‘‘(cc) in accordance with 
subclause (II), the right to unde-
veloped recreational uses, includ-
ing undeveloped hunting and 
fishing and leasing of those 
rights for economic gain, pursu-
ant to applicable State and Fed-
eral laws (including regulations). 
‘‘(II) 
UNDEVELOPED
REC-
REATIONAL
USES.—Undeveloped rec-
reational 
uses 
under 
subclause 
(I)(cc)— 
‘‘(aa) shall be consistent 
with the long-term protection and 
enhancement of the conservation 
purposes and other natural val-
ues of the easement area; and 
‘‘(bb) may include hunting 
equipment, such as tree stands 
and hunting blinds that are rus-
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tic and customary for the locale, 
as determined by the Secretary. 
‘‘(E) PROHIBITED ACTIVITIES.—An ease-
ment conservation plan shall identify the fol-
lowing activities as prohibited: 
‘‘(i) GRASSLAND.—In the case of 
grassland, an easement conservation plan 
shall prohibit the production of crops 
(other than hay or grass grown for bio-
mass harvest), fruit trees, vineyards, or 
any other agricultural commodity that is 
inconsistent with maintaining grazing land. 
‘‘(ii) WETLAND.—In the case of wet-
land, an easement conservation plan shall 
prohibit— 
‘‘(I) the alteration of wildlife 
habitat and other natural features of 
the land, unless specifically permitted 
by the easement conservation plan; 
and 
‘‘(II) the spraying of the land 
with chemicals or the mowing of the 
land, unless spraying or mowing is— 
‘‘(aa) permitted by the ease-
ment conservation plan to meet 
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the habitat needs of specific wild-
life species; or 
‘‘(bb) necessary to comply 
with Federal or State noxious 
weed control laws and emergency 
pest treatment program. 
‘‘(iii) ALL ENROLLED LAND.—In the 
case of all enrolled land, the easement con-
servation plan shall prohibit— 
‘‘(I) any activities to be carried 
out on the land of the owner that is 
immediately adjacent to, and function-
ally related to, the land that is subject 
to the easement if the activities will 
alter, degrade, or otherwise diminish 
the functional value of the eligible 
land; and 
‘‘(II) the adoption of any other 
practice that would tend to defeat the 
purposes of this subchapter, as deter-
mined by the Secretary. 
‘‘(3) COMPATIBLE USES BY THE OWNER.— 
‘‘(A) IN GENERAL.—Land enrolled in the 
program may be used for compatible uses if the 
use is specifically permitted by an easement 
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conservation plan and consistent with the long- 
term protection and enhancement of the re-
sources for which the easement was established. 
‘‘(B) AUTHORIZED USES.—The Secretary 
may authorize the use of the easement area for 
compatible uses under the terms of the ease-
ment deed or contract, even if the uses were not 
identified as compatible at the time of easement 
enrollment. 
‘‘(C) LIMITATIONS.— 
‘‘(i) IN
GENERAL.—Compatible use 
authorizations shall only be made if the 
Secretary determines, in coordination with 
the State technical committee, that the 
amount, timing, intensity, and duration of 
the compatible use ensures that the pur-
poses of the program will be achieved. 
‘‘(ii) INCLUSIONS.—Compatible uses 
under clause (i) may include managed 
haying and grazing for grassland (includ-
ing the managed harvesting of biomass) or 
timber harvesting or managed harvesting 
of biomass of forest land. 
‘‘(4) ADDITIONAL TERMS AND CONDITIONS.—A 
30-year contract or easement under the program 
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shall include such additional provisions as the Sec-
retary determines are appropriate to carry out or fa-
cilitate the purposes and administration of the pro-
gram. 
‘‘(d) COMPLIANCE.—On a violation of the terms or 
conditions of a 30-year contract or easement under this 
subchapter— 
‘‘(1) the contract or easement shall remain in 
force; and 
‘‘(2) the Secretary may require the owner to re-
fund all or part of any payments received under the 
program, with interest on the payments as deter-
mined appropriate by the Secretary. 
‘‘SEC. 1237C. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—In return for the granting of an 
easement by an owner under this subchapter, the Sec-
retary shall— 
‘‘(1) share the cost of carrying out the estab-
lishment of conservation measures and practices, in-
cluding necessary maintenance activities, as de-
scribed in the easement conservation plan associated 
with the easement to the extent that the Secretary 
determines that cost sharing is appropriate and in 
the public interest; and 
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‘‘(2) provide necessary technical assistance to 
assist owners in complying with the terms and con-
ditions of the easement and the easement conserva-
tion plan. 
‘‘(b) RANKING OF OFFERS.—When evaluating offers 
from owners, the Secretary may consider— 
‘‘(1) the cost-effectiveness of each easement or 
other interest in the eligible land, so as to maximize 
the environmental benefits per dollar expended; 
‘‘(2) whether the owner or another individual or 
legal entity is offering to contribute financially to 
the cost of the easement or other interest in the land 
to leverage Federal funds; 
‘‘(3) the conservation and wildlife habitat bene-
fits of obtaining an easement or other interest in the 
land; 
‘‘(4) the relative threat of conversion of the 
land to development or row cropping, as applicable; 
‘‘(5) the extent to which the purposes of the 
easement program would be achieved on the land of-
fered for enrollment; and 
‘‘(6) other factors the Secretary determines are 
appropriate to select among offers with similar re-
source concerns and objectives. 
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‘‘(c) EASEMENT PRIORITY.—In carrying out this sub-
chapter, to the extent practicable taking into consideration 
costs and future agricultural and food needs, the Secretary 
shall give priority— 
‘‘(1) to obtaining permanent conservation ease-
ments before shorter-term conservation easements; 
and 
‘‘(2) in consultation with the Secretary of the 
Interior, to acquiring easements based on the value 
of the easements for protecting vulnerable land and 
protecting and enhancing habitat for migratory birds 
and other wildlife. 
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall 
provide owners with technical assistance to assist the own-
ers in complying with the terms of the easement, 30-year 
contract, and associated easement conservation plans 
under the program. 
‘‘(e) PAYMENTS TO OTHERS.—If an owner who is en-
titled to a payment under the program dies, becomes in-
competent, is otherwise unable to receive the payment, or 
is succeeded by another person who renders or completes 
the required performance, the Secretary shall make the 
payment, in accordance with regulations promulgated by 
the Secretary and without regard to any other provision 
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of law, in such manner as the Secretary determines is fair 
and reasonable in light of all the circumstances. 
‘‘SEC. 1237D. PAYMENTS. 
‘‘(a) IN GENERAL.—Effective on the date of enact-
ment of the Rural Economic Farm and Ranch Sustain-
ability and Hunger Act of 2011, the Secretary shall pay 
as compensation for a permanent conservation easement 
acquired under this subchapter the lowest of— 
‘‘(1) the fair market value of the land, as deter-
mined by the Secretary, using the Uniform Stand-
ards of Professional Appraisal Practices or an area- 
wide market analysis or survey; 
‘‘(2) the amount corresponding to a geo-
graphical cap, as determined by the Secretary in 
regulations; or 
‘‘(3) the offer made by the owner. 
‘‘(b) FORM
OF PAYMENT.—Compensation for an 
easement shall be provided by the Secretary in the form 
of a cash payment, in an amount determined under sub-
section (a) and specified in the easement agreement. 
‘‘(c) PAYMENT SCHEDULE FOR EASEMENTS.— 
‘‘(1) EASEMENTS
VALUED
AT
$500,000
OR 
LESS.—For easements valued at $500,000 or less, 
the Secretary may provide easement payments in not 
more than 30 annual payments. 
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‘‘(2) EASEMENTS IN EXCESS OF $500,000.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), for easements valued at 
more than $500,000, the Secretary may provide 
easement payments in at least 5, but not more 
than 30, annual payments. 
‘‘(B) EXCEPTION.—If the Secretary deter-
mines it would further the purposes of the pro-
gram, the Secretary may make a lump sum 
payment for an easement described in subpara-
graph (A). 
‘‘(d) RESTORATION PAYMENTS.— 
‘‘(1) PAYMENT RATES.—In making restoration 
payments, the Secretary shall seek to minimize Fed-
eral costs and may offer— 
‘‘(A) in the case of a permanent easement, 
to pay an amount that is not more than 90 per-
cent of the eligible costs; and 
‘‘(B) in the case of a nonpermanent ease-
ment described in section 1237A(a)(2)(A)(ii) or 
a 30-year contract, to pay an amount that is 
not more than 70 percent of the eligible costs. 
‘‘(2) RESTORATION
OFFSET.—The Secretary 
shall deduct as a closing cost from the easement 
compensation to be paid, the estimated share of the 
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owner of the restoration costs, and that payment 
shall be— 
‘‘(A) determined complete and final for 
purposes of meeting the cost-share responsi-
bility of the owner; and 
‘‘(B) administered using the restoration 
funds of the Secretary. 
‘‘(e) EXEMPTION FROM AUTOMATIC SEQUESTER.— 
Notwithstanding any other provision of law, no order 
issued under section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 902) 
shall affect any payment under this subchapter. 
‘‘SEC. 1237E. DELEGATION OF DUTY. 
‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘eligible entity’ means— 
‘‘(1) an agency of State or local government or 
an Indian tribe; or 
‘‘(2) an organization that— 
‘‘(A) is organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of the 
conservation purposes specified in clause (i), 
(ii), (iii), or (iv) of section 170(h)(4)(A) of the 
Internal Revenue Code of 1986; 
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‘‘(B) is an organization described in sec-
tion 501(c)(3) of that Code that is exempt from 
taxation under section 501(a) of that Code; and 
‘‘(C) is described in— 
‘‘(i) paragraph (1) or (2) of section 
509(a) of that Code; or 
‘‘(ii) in section 509(a)(3) of that 
Code, and is controlled by an organization 
described in section 509(a)(2) of that 
Code. 
‘‘(b) AUTHORITY TO DELEGATE.— 
‘‘(1) IN GENERAL.—The Secretary may dele-
gate a duty under the program— 
‘‘(A) by transferring title of ownership to 
an easement originally acquired by the Sec-
retary to an eligible entity to hold and enforce; 
or 
‘‘(B) by entering into a cooperative agree-
ment with an eligible entity for the eligible enti-
ty to own, write, and enforce an easement that 
the Secretary determines will further the pur-
poses of the program. 
‘‘(2) DELEGATION OF EASEMENT ADMINISTRA-
TION
OF
EASEMENTS
ACQUIRED
BY
THE
SEC-
RETARY.— 
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‘‘(A) IN
GENERAL.—The Secretary may 
delegate any of the easement management, 
monitoring, and enforcement responsibilities of 
the Secretary under the program to Federal or 
State agencies or other eligible entities that the 
Secretary determines have the appropriate au-
thority, expertise, and resources necessary to 
carry out the delegated responsibilities. 
‘‘(B) 
SECRETARIAL
DISCRETION.—The 
Secretary may determine that the delegation to 
a particular agency or eligible entity is appro-
priate for 1 type of easement and not appro-
priate for another type of easement, depending 
on the resource purposes for which an easement 
is acquired. 
‘‘(3) TRANSFER OF TITLE OF OWNERSHIP.— 
‘‘(A) 
TRANSFER.—The 
Secretary 
may 
transfer title of ownership to an easement to an 
eligible entity to hold and enforce, in lieu of the 
Secretary, subject to the right of the Secretary 
to conduct periodic inspections and enforce the 
easement, if— 
‘‘(i) the Secretary determines that the 
transfer will promote long-term protection 
of the easement; 
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‘‘(ii) the owner authorizes the eligible 
entity to hold or enforce the easement; and 
‘‘(iii) the eligible entity agrees to as-
sume the costs incurred in administering 
and enforcing the easement, including the 
costs of restoration or rehabilitation of the 
land as determined by the Secretary. 
‘‘(B) APPLICATION.—An eligible entity 
that seeks to hold and enforce an easement that 
has been acquired by the Secretary shall apply 
to the Secretary for approval. 
‘‘(C) APPROVAL BY SECRETARY.—The Sec-
retary may approve an application described in 
subparagraph (B) if the eligible entity— 
‘‘(i) has the relevant experience nec-
essary for the particular resources to be 
protected, as appropriate for the applica-
tion, to administer an easement previously 
acquired by the Secretary; 
‘‘(ii) has a charter that describes a 
commitment to furthering the particular 
conservation purposes for which an ease-
ment was originally acquired by the Sec-
retary; and 
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‘‘(iii) has the resources necessary to 
effectuate the purposes of this subchapter. 
‘‘(c) COOPERATIVE AGREEMENTS.— 
‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.— 
The Secretary shall establish the terms and condi-
tions of a cooperative agreement under which an eli-
gible entity shall use funds provided by the Sec-
retary to own, write, and enforce an easement, in 
lieu of the Secretary. 
‘‘(2) MINIMUM
REQUIREMENTS.—At a min-
imum, the cooperative agreement shall— 
‘‘(A) specify the qualification of the eligible 
entity to carry out the responsibilities of the eli-
gible entity under the program, including acqui-
sition, monitoring, enforcement, and implemen-
tation of management policies and procedures 
that ensure the long-term integrity of the ease-
ment protections; 
‘‘(B) require the eligible entity to assume 
the costs incurred in administering and enforc-
ing the easement, including the costs of restora-
tion or rehabilitation of the land as specified by 
the Secretary; 
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‘‘(C) specify the right of the Secretary to 
conduct periodic inspections to verify the en-
forcement by the eligible entity of the easement; 
‘‘(D) subject to subparagraph (E), identify 
a specific project or a range of projects to be 
funded under the agreement; 
‘‘(E) allow, upon mutual agreement of the 
parties, substitution of qualified projects that 
are identified at the time of substitution; 
‘‘(F) specify the manner in which the eligi-
ble entity will evaluate and report the use of 
funds to the Secretary; 
‘‘(G) allow the eligible entity flexibility to 
develop and use terms and conditions for ease-
ments, if the Secretary finds the terms and con-
ditions consistent with the purposes of the pro-
gram and adequate to enable effective enforce-
ment of the easements; and 
‘‘(H) provide for a schedule of payments to 
an eligible entity, as agreed to by the Secretary 
and the eligible entity. 
‘‘(3) COST SHARING.— 
‘‘(A) IN GENERAL.—As part of a coopera-
tive agreement with an eligible entity under this 
subsection, the Secretary may provide a share 
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of the purchase price of an easement under the 
program. 
‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTI-
TY.— 
‘‘(i) IN GENERAL.—The eligible entity 
shall be required to provide a share of the 
purchase price at least equivalent to that 
provided by the Secretary. 
‘‘(ii) AMOUNT OF SHARE.—The Sec-
retary shall base the share on the amount 
that the Secretary would have paid for an 
easement acquired directly by the Sec-
retary under this subchapter. 
‘‘(C) PRIORITY.—The Secretary may ac-
cord a higher priority to proposals from eligible 
entities that leverage a greater share of the 
purchase price of the easement. 
‘‘(D) MINIMIZATION
OF
FEDERAL
EX-
PENSE.—In determining cost-share levels, the 
Secretary— 
‘‘(i) shall seek to minimize Federal 
costs; and 
‘‘(ii) may provide an amount less than 
the maximum cost-share authorized under 
this section. 
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‘‘(d) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(1) CERTIFICATION PROCESS.—The Secretary 
shall establish a process under which the Secretary 
may— 
‘‘(A) directly certify eligible entities that 
meet established criteria; 
‘‘(B) enter into long-term agreements with 
certified entities; and 
‘‘(C) accept proposals for cost-share assist-
ance to certified entities for the purchase of 
conservation easements throughout the duration 
of the agreements. 
‘‘(2) CERTIFICATION CRITERIA.—In order to be 
certified, an eligible entity shall demonstrate to the 
Secretary that the entity will maintain, at a min-
imum, for the duration of the agreement— 
‘‘(A) a plan for administering easements 
that is consistent with the purpose of this sub-
chapter; 
‘‘(B) the capacity and resources to monitor 
and enforce easements; and 
‘‘(C) policies and procedures to ensure— 
‘‘(i) the long-term integrity of ease-
ments; 
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‘‘(ii) timely completion of acquisitions 
of easements; and 
‘‘(iii) timely and complete evaluation 
and reporting to the Secretary on the use 
of funds provided by the Secretary under 
the program. 
‘‘(3) REVIEW AND REVISION.— 
‘‘(A) REVIEW.—The Secretary shall con-
duct a review of eligible entities certified under 
paragraph (1) at least every 3 years to ensure 
that the entities are meeting the criteria estab-
lished under paragraph (2). 
‘‘(B) REVOCATION.—If the Secretary finds 
that the certified entity no longer meets the cri-
teria established under paragraph (2), the Sec-
retary may— 
‘‘(i) allow the certified entity a speci-
fied period of time of not less than 180 
days in which to take such actions as may 
be necessary to meet the criteria; and 
‘‘(ii) revoke the certification of the en-
tity, if after the specified period of time, 
the certified entity does not meet the cri-
teria established in paragraph (2). 
‘‘(e) PROTECTION OF FEDERAL INVESTMENT.— 
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‘‘(1) IN GENERAL.—If delegating a duty under 
this section, the Secretary shall ensure that the 
terms of an easement include a right of enforcement 
for the Department. 
‘‘(2) VIOLATION.—If an agency or other eligible 
entity violates the terms or conditions of a delegated 
responsibility or associated cooperative agreement 
entered into under this section— 
‘‘(A) the delegation, and any associated co-
operative agreement, may be revoked or termi-
nated; and 
‘‘(B) the Secretary may required the agen-
cy or other eligible entity to refund all or part 
of any payments received by the agency or eligi-
ble entity under the program, with interest on 
the payments as determined appropriate by the 
Secretary. 
‘‘SEC. 1237F. CHANGES IN OWNERSHIP AND AGREEMENT 
MODIFICATION. 
‘‘(a) LIMITATIONS.—No easement shall be created 
under this subchapter on land that has changed ownership 
during the preceding 2-year period unless the Secretary 
determines that— 
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‘‘(1) the new ownership was acquired by will or 
succession as a result of the death of the previous 
owner; 
‘‘(2)(A) the ownership change occurred because 
of foreclosure on the land; and 
‘‘(B) immediately before the foreclosure, the 
owner of the land exercises a right of redemption 
from the mortgage holder in accordance with State 
law; 
‘‘(3) the land was acquired under circumstances 
that give adequate assurances that the land was not 
acquired for the purposes of placing the land in the 
program; or 
‘‘(4) the new ownership was acquired by the 
sibling, parent, child, or grandchild of the previous 
owner. 
‘‘(b) MODIFICATION, EXCHANGE, 
AND
TERMI-
NATION.— 
‘‘(1) IN GENERAL.—The Secretary may subor-
dinate, exchange, terminate, or modify any easement 
or other interest in land administered by the Nat-
ural Resources Conservation Service, either directly 
or on behalf of the Commodity Credit Corporation, 
when the Secretary determines that— 
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‘‘(A) it is in the interest of the Federal 
Government to subordinate, exchange, modify, 
or terminate the easement or other interest in 
the land; 
‘‘(B) the action will address a compelling 
public need or will further the practical admin-
istration of the program; 
‘‘(C) the action will result in comparable 
conservation value and equal or greater eco-
nomic value to the United States; and 
‘‘(D) the current owner agrees to the modi-
fication. 
‘‘(2) NOTICE.—At least 90 days before taking 
any action to terminate an easement or other inter-
est in land, the Secretary shall provide written no-
tice of the action to the Committee on Agriculture 
of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Sen-
ate. 
‘‘(c) ENFORCEABILITY.—An easement, contract, or 
other agreement entered into under the program shall con-
tinue to be legally enforceable on the land for the duration 
of the easement, contract, or other agreement, regardless 
of whether the ownership of the land changes. 
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‘‘SEC. 1237G. PROTECTIONS. 
‘‘(a) PROTECTIONS.—In the case of an owner that 
enrolls land in the program under an agreement that in-
cludes protection of vulnerable species and whose con-
servation activities result in a net conservation benefit for 
listed, candidate, or other species, the Secretary shall 
make available to the owner safe harbor or similar assur-
ances and protection under— 
‘‘(1) section 7(b)(4) of the Endangered Species 
Act of 1973 (16 U.S.C. 1536(b)(4)); or 
‘‘(2) section 10(a)(1) of that Act (16 U.S.C. 
1539(a)(1)). 
‘‘(b) MEASURES.—If protection under subsection (a) 
requires the taking of measures that are in addition to 
the measures covered by the applicable restoration plan 
agreed to under the program, the cost of the additional 
measures, as well as the cost of any permit, shall be con-
sidered part of the restoration plan for purposes of finan-
cial assistance under the program. 
‘‘SEC. 1237H. FUNDING. 
‘‘(a) IN GENERAL.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out 
this subchapter $1,000,000,000 for each fiscal year. 
‘‘(b) ADDITIONAL FUNDING.—In addition to the 
funds made available under subsection (a), there is au-
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thorized to be appropriated to carry out this subchapter 
$500,000,000 for each fiscal year. 
‘‘(c) USE OF FUNDS.—Of amounts made available to 
carry out this section for a fiscal year, the Secretary shall 
use— 
‘‘(1) not less than 5 percent of the funds to en-
roll forest land in the program eligible under section 
1237A(b)(4); 
‘‘(2) not more than 5 percent to enroll prime 
and productive agricultural land eligible under sec-
tion 1237A(b)(5); 
‘‘(3) not more than 5 percent to enroll land eli-
gible under section 1237E(c); and 
‘‘(4) not less than 8 percent of the funds to 
provide technical assistance. 
‘‘(d) ACCEPTANCE
OF CONTRIBUTIONS.—Notwith-
standing any other provision of law, the Secretary may 
accept and use contributions of non-Federal funds to 
make payments under this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Chapter 1 of subtitle D of the Food Secu-
rity Act of 1985 (16 U.S.C. 3830 et seq.) is amend-
ed in the chapter heading by inserting ‘‘, CON-
SERVATION RESERVE, AND EASEMENT 
BENEFITS PROGRAM’’. 
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(2) Section 1238A of the Food Security Act of 
1985 (16 U.S.C. 3838a) is amended— 
(A) in subsection (b)(3)— 
(i) by striking subparagraphs (B) and 
(C) and inserting the following: 
‘‘(B) EASEMENT
BENEFITS
PROGRAM.— 
Land enrolled in the easement benefits program 
established under subchapter C of chapter 1 
shall not be eligible for enrollment in the con-
servation security program.’’; and 
(ii) by redesignating subparagraph 
(D) as subparagraph (C); and 
(B) in subsection (e)(2)(B)(ii)(I)(cc), by 
striking ‘‘wetlands reserve program’’ and insert-
ing ‘‘easement benefits program’’. 
(3) Section 1252(c) of the Food Security Act of 
1985 (16 U.S.C. 3851(c)) is amended— 
(A) by striking ‘‘(c) FUNDING SOURCE.— 
’’ and all that follows through ‘‘the Secretary’’ 
in paragraph (1) and inserting the following: 
‘‘(c) FUNDING SOURCE.—The Secretary’’; and 
(B) by striking paragraph (2). 
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Subtitle C—Working Land Program 
SEC. 2201. WORKING LAND PROGRAM. 
(a) IN GENERAL.—Title XII of the Food Security 
Act of 1985 (16 U.S.C. 3801 et seq.) is amended— 
(1) by striking subchapter B of chapter 2 of 
subtitle D (16 U.S.C. 3838d et seq.); 
(2) by striking section 1240N (16 U.S.C. 
3839bb–1); and 
(3) by striking chapter 4 of subtitle D (16 
U.S.C. 3839aa) and inserting the following: 
‘‘CHAPTER 4—WORKING LAND PROGRAM 
‘‘SEC. 1240. WORKING LAND PROGRAM. 
‘‘(a) PURPOSES.—The Secretary shall establish a 
working land program to promote agricultural production, 
forest management, and environmental quality as compat-
ible goals, and to optimize environmental benefits, by— 
‘‘(1) assisting producers in complying with 
local, State, and national regulatory requirements 
concerning— 
‘‘(A) soil, water, and air quality; 
‘‘(B) wildlife habitat; and 
‘‘(C) surface and ground water conserva-
tion; 
‘‘(2) avoiding, to the maximum extent prac-
ticable, the need for resource and regulatory pro-
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grams by assisting producers in protecting soil, 
water, air, and related natural resources and meet-
ing environmental quality criteria established by 
Federal, State, tribal, and local agencies; 
‘‘(3) providing flexible assistance to producers 
to install and maintain conservation practices that 
sustain food and fiber production while— 
‘‘(A) enhancing soil, water, and related 
natural resources, including grazing land, 
forestland, wetland, and wildlife; and 
‘‘(B) improving energy efficiency and in-
creasing use of renewable energy; 
‘‘(4) assisting producers to make beneficial, 
cost-effective changes to production systems (includ-
ing conservation practices relating to organic pro-
duction), grazing management, fuels management, 
forest management, nutrient management associated 
with livestock, pest or irrigation management, or 
other practices on agricultural and forested land; 
and 
‘‘(5) consolidating and streamlining conserva-
tion planning and regulatory compliance processes to 
reduce administrative burdens on producers and the 
cost of achieving environmental goals. 
‘‘(b) DEFINITIONS.—In this chapter: 
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‘‘(1) CONSERVATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures that are de-
signed to address a resource concern. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a re-
source concern. 
‘‘(2) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means land on which agricultural com-
modities, livestock, or forest-related products 
are produced. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pasture land; 
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‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural land (includ-
ing cropped woodland, marshes, areas de-
voted 
to 
aquaculture 
and 
associated 
waters, and agricultural land used or capa-
ble of being used for the production of live-
stock) on which resource concerns relating 
to agricultural production could be ad-
dressed through a contract under the pro-
gram, as determined by the Secretary. 
‘‘(C) EXCLUSIONS.—The term ‘eligible 
land’ does not include any land enrolled in— 
‘‘(i) the conservation reserve program 
under subchapter B of chapter 1; or 
‘‘(ii) the easement benefits program 
under subchapter C of chapter 1. 
‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘or-
ganic system plan’ means an organic plan approved 
under the national organic program established 
under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.). 
‘‘(4) PARTNER.—The term ‘partner’ means any 
entity that enters into a partnership agreement with 
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the Secretary to carry out a program on a regional 
basis, including— 
‘‘(A) an agricultural or silvicultural pro-
ducer association or other group of such pro-
ducers; 
‘‘(B) a State or unit of local government; 
or 
‘‘(C) an Indian tribe. 
‘‘(5) PARTNERSHIP
AGREEMENT.—The term 
‘partnership agreement’ means an agreement be-
tween the Secretary and a partner to carry out a 
practice under the program. 
‘‘(6) PAYMENT.—The term ‘payment’ means fi-
nancial assistance provided for performing practices 
under this chapter, including compensation for— 
‘‘(A) incurred costs associated with plan-
ning, design, materials, equipment, installation, 
labor, management, maintenance, or training; 
and 
‘‘(B) income forgone by the producer. 
‘‘(7) PRACTICE.—The term ‘practice’ means 1 
or more improvements and conservation activities 
that are consistent with the purposes of the pro-
gram, as determined by the Secretary, including— 
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‘‘(A) improvements to eligible land of the 
producer, including— 
‘‘(i) structural practices; 
‘‘(ii) land management practices; 
‘‘(iii) vegetative practices; 
‘‘(iv) forest management; and 
‘‘(v) other practices that the Secretary 
determines would further the purposes of 
the program; and 
‘‘(B) conservation activities involving the 
development of plans appropriate for the eligi-
ble land of the producer, including— 
‘‘(i) comprehensive nutrient manage-
ment planning; and 
‘‘(ii) other plans that the Secretary 
determines would further the purposes of 
the program under this part. 
‘‘(8) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a resource 
concern that is identified at the State level, in con-
sultation with the State technical committee, as a 
priority for a particular watershed or area of the 
State. 
‘‘(9) PRODUCER.—The term ‘producer’ has the 
meaning given the term in section 1238. 
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‘‘(10) PROGRAM.—The term ‘program’ means 
the working land program established under this 
chapter. 
‘‘(11) RESOURCE
CONCERN.—The term ‘re-
source concern’ means a specific natural resource 
impairment or problem, as determined by the Sec-
retary, that— 
‘‘(A) represents a significant concern in a 
State or region; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities by producers on land eligible for enroll-
ment in the program. 
‘‘SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION. 
‘‘(a) IN
GENERAL.—During each of the 2013 
through 2017 fiscal years, the Secretary shall provide pay-
ments to producers and partners that enter into contracts 
or partnership agreements with the Secretary under the 
program. 
‘‘(b) EVALUATION OF APPLICATIONS.— 
‘‘(1) EVALUATION
CRITERIA.—The Secretary 
shall develop criteria for evaluating applications that 
will ensure that national, State, and local conserva-
tion priorities are effectively addressed. 
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‘‘(2) PRIORITIZATION
OF
APPLICATIONS.—In 
evaluating applications under the program, the Sec-
retary shall prioritize applications— 
‘‘(A) based on the overall level of cost-ef-
fectiveness of the project proposed in an appli-
cation to ensure that the conservation practices 
and approaches proposed are the most cost-ef-
fective means of achieving the anticipated envi-
ronmental benefits of the project; 
‘‘(B) based on how effectively and com-
prehensively the proposed project addresses the 
designated resource concern or resource con-
cerns; 
‘‘(C) that best fulfill the purpose of the 
program specified in section 1240(a); 
‘‘(D) that improve conservation practices 
or systems in place on the operation at the time 
the contract offer is accepted or that will com-
plete a conservation system; and 
‘‘(E) that will bring significant environ-
mental benefits in improving specific high-pri-
ority environmental concerns, as designated by 
the Secretary. 
‘‘(3) GROUPING
OF
APPLICATIONS.—To the 
maximum extent practicable, the Secretary shall 
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group applications of similar crop or livestock oper-
ations for evaluation purposes or otherwise evaluate 
applications relative to other applications for similar 
farming operations. 
‘‘(4) BIDDING DOWN.—If the Secretary deter-
mines that the environmental values of 2 or more 
applications for payments are comparable, the Sec-
retary shall not assign a higher priority to an appli-
cation only because the application would present 
the least cost to the program. 
‘‘(c) PRACTICES AND TERM.— 
‘‘(1) PRACTICES.—A contract under the pro-
gram may apply to the performance of 1 or more 
practices. 
‘‘(2) TERM.—A contract or partnership agree-
ment under the program shall have a term that— 
‘‘(A)(i) except as provided in clause (ii), at 
a minimum, is equal to the period beginning on 
the date on which the contract is entered into 
and ending on the date that is 1 year after the 
date on which all practices under the contract 
have been implemented; and 
‘‘(ii) may, for contracts or partnership 
agreements for development of conservation ac-
tivity plans or for other contracts or partner-
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ship agreements designated by the Secretary, be 
less than 1 year; but 
‘‘(B) does not exceed 10 years. 
‘‘(d) PAYMENTS.— 
‘‘(1) IN GENERAL.—Payments shall be provided 
to a producer or partner to implement 1 or more 
practices under the program. 
‘‘(2) LIMITATION ON PAYMENT AMOUNTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (4), a payment to a producer or 
partner for performing a practice may not ex-
ceed, as determined by the Secretary— 
‘‘(i) 75 percent of the costs associated 
with planning, design, materials, equip-
ment, installation, labor, management, 
maintenance, or training; 
‘‘(ii) 100 percent of income foregone 
by the producer or partner, as determined 
in accordance with paragraph (3); or 
‘‘(iii) in the case of a practice con-
sisting of elements covered under clauses 
(i) and (ii)— 
‘‘(I) 75 percent of the costs in-
curred for those elements covered 
under clause (i); and 
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‘‘(II) 100 percent of income fore-
gone for those elements covered under 
clause (ii). 
‘‘(B) MINIMIZATION OF FEDERAL COST.— 
The Secretary— 
‘‘(i) shall seek to minimize Federal 
costs in determining cost-share levels; and 
‘‘(ii) is not required to provide the 
maximum cost-share amount described in 
subparagraph (A). 
‘‘(3) SPECIAL RULE INVOLVING PAYMENTS FOR 
FOREGONE
INCOME.—In determining the amount 
and rate of payments under paragraph (2)(A)(ii), 
the Secretary may accord great significance to a 
practice that, as determined by the Secretary, pro-
motes— 
‘‘(A) residue management; 
‘‘(B) nutrient management; 
‘‘(C) air quality management; 
‘‘(D) invasive species management; 
‘‘(E) pollinator habitat; 
‘‘(F) animal carcass management tech-
nology; 
‘‘(G) pest management; or 
‘‘(H) water conservation. 
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‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRO-
DUCERS.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a producer that is a 
limited resource, socially disadvantaged farmer 
or rancher, or a beginning farmer or rancher, 
the Secretary shall increase the amount that 
would otherwise be provided to a producer 
under this subsection— 
‘‘(i) to not more than 90 percent of 
the costs associated with planning, design, 
materials, equipment, installation, labor, 
management, maintenance, or training; 
and 
‘‘(ii) to not less than 25 percent above 
the otherwise applicable rate. 
‘‘(B) ADVANCE
PAYMENTS.—Not more 
than 30 percent of the amount determined 
under subparagraph (A) may be provided in ad-
vance for the purpose of purchasing materials 
or contracting. 
‘‘(C) MINIMIZATION OF FEDERAL COST.— 
The Secretary— 
‘‘(i) shall seek to minimize Federal 
costs in determining cost-share levels; and 
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‘‘(ii) is not required to provide the 
maximum cost-share amount described in 
subparagraph (A). 
‘‘(5) FINANCIAL
ASSISTANCE
FROM
OTHER 
SOURCES.—Except as provided in paragraph (6), 
any payments received by a producer or partner 
from a State or private organization, individual, or 
legal entity for the implementation of 1 or more 
practices on eligible land of the producer shall be in 
addition to the payments provided to the producer or 
partner under this subsection. 
‘‘(6) OTHER PAYMENTS.—A producer or part-
ner shall not be eligible for payments for practices 
on eligible land under the program if the producer 
or partner receives payments or other benefits for 
the same practice on the same land under another 
program under this title. 
‘‘(e) MODIFICATION
OR
TERMINATION
OF
CON-
TRACTS OR PARTNERSHIP AGREEMENTS.— 
‘‘(1) VOLUNTARY
MODIFICATION
OR
TERMI-
NATION.—The Secretary may modify or terminate a 
contract or partnership agreement entered into with 
a producer or partner under the program if— 
‘‘(A) the producer or partner agrees to the 
modification or termination; and 
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‘‘(B) the Secretary determines that the 
modification or termination is in the public in-
terest. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract or partnership 
agreement under the program if the Secretary deter-
mines that the producer or partner violated the con-
tract or partnership agreement. 
‘‘(f) FUNDING FOR INDIAN TRIBES AND ALASKA NA-
TIVE CORPORATIONS.—The Secretary may enter into al-
ternative funding arrangements with Indian tribes and 
Alaska Native Corporations (including affiliated member-
ship organizations) if the Secretary determines that— 
‘‘(1) the goals and objectives of the program 
will be met by the arrangements; and 
‘‘(2) statutory limitations regarding contracts 
with individual producers will not be exceeded by 
any tribal or Native Corporation member. 
‘‘SEC. 1240B. DUTIES OF PRODUCERS AND PARTNERS. 
‘‘(a) IN GENERAL.—To receive payments under the 
program, a producer or partner shall agree— 
‘‘(1) to implement a program plan (including a 
comprehensive nutrient management plan, if applica-
ble) that describes conservation and environmental 
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purposes to be achieved through 1 or more practices 
that are approved by the Secretary; 
‘‘(2) not to conduct any practices on the eligible 
land that would tend to defeat the purposes of the 
program; 
‘‘(3) on the violation of a term or condition of 
the contract or partnership agreement at any time 
during which the producer or partner is required to 
have control of the eligible land— 
‘‘(A) if the Secretary determines that the 
violation warrants termination of the contract 
or partnership agreement— 
‘‘(i) to forfeit all rights to receive pay-
ments under the contract or partnership 
agreement; and 
‘‘(ii) to refund to the Secretary all or 
a portion of the payments received by the 
producer or partner under the contract or 
partnership agreement, including any in-
terest on the payments, as determined by 
the Secretary; or 
‘‘(B) if the Secretary determines that the 
violation does not warrant termination of the 
contract or partnership agreement, to refund to 
the Secretary, or accept adjustments to, the 
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payments provided to the producer or partner, 
as the Secretary determines to be appropriate; 
‘‘(4) on the transfer of the right and interest of 
the producer or partner in eligible land subject to 
the contract or partnership agreement, unless the 
transferee of the right and interest agrees with the 
Secretary to assume all obligations of the contract or 
partnership agreement, to refund all payments re-
ceived under the program, as determined by the Sec-
retary; 
‘‘(5) to supply information as required by the 
Secretary to determine compliance with the program 
plan and requirements of the program; and 
‘‘(6) to comply with such additional provisions 
as the Secretary determines are necessary to carry 
out the program plan. 
‘‘(b) PROGRAM PLAN.— 
‘‘(1) IN GENERAL.—To be eligible to receive 
payments under the program, a producer or partner 
shall submit to the Secretary for approval a plan of 
operations that— 
‘‘(A) specifies practices covered under the 
program; 
‘‘(B) includes such terms and conditions as 
the Secretary considers necessary to carry out 
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the program, including a description of the pur-
poses to be met by the implementation of the 
plan; 
‘‘(C) in the case of a confined livestock 
feeding operation, provides for development and 
implementation of a comprehensive nutrient 
management plan, if applicable; and 
‘‘(D) in the case of forest land, is con-
sistent with the provisions of a forest manage-
ment plan that is approved by the Secretary, 
which may include— 
‘‘(i) a forest stewardship plan de-
scribed in section 5 of the Cooperative 
Forestry Assistance Act of 1978 (16 
U.S.C. 2103a); 
‘‘(ii) another practice plan approved 
by the State forester; or 
‘‘(iii) another plan determined appro-
priate by the Secretary. 
‘‘(2) AVOIDANCE OF DUPLICATION.—The Sec-
retary shall— 
‘‘(A) consider a plan developed in order to 
acquire a permit under a water or air quality 
regulatory program as the equivalent of a plan 
of operations under paragraph (1), if the plan 
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contains elements equivalent to those elements 
required by a plan of operations; and 
‘‘(B) to the maximum extent practicable, 
eliminate duplication of planning activities 
under the program and comparable conserva-
tion programs. 
‘‘SEC. 1240C. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To the extent appropriate, the 
Secretary shall assist a producer or partner in achieving 
the conservation and environmental goals of a program 
plan by— 
‘‘(1) providing payments for developing and im-
plementing 1 or more practices, as appropriate; and 
‘‘(2) providing the producer or partner with in-
formation and training to aid in the implementation 
of the plan. 
‘‘(b) TARGETED PRACTICES.— 
‘‘(1) AGRICULTURAL
WATER
ENHANCEMENT 
INITIATIVE.—Of the funds made available to carry 
out this chapter, the Secretary shall use not less 
than $60,000,000 to provide payments for agricul-
tural water enhancement activity to promote ground 
and surface water conservation and improve water 
quality on agricultural land, including— 
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‘‘(A) water quality or water conservation 
plan development, including resource condition 
assessment and modeling; 
‘‘(B) water conservation restoration or en-
hancement projects, including conversion to the 
production of less water-intensive agricultural 
commodities or dryland farming; 
‘‘(C) water quality or quantity restoration 
or enhancement projects; 
‘‘(D) irrigation system improvement and 
irrigation efficiency enhancement; 
‘‘(E) activities designed to mitigate the ef-
fects of drought; and 
‘‘(F) related activities that the Secretary 
determines will help achieve water quality or 
water conservation benefits on agricultural 
land. 
‘‘(2) 
AGRICULTURAL
AIR
QUALITY
CON-
CERNS.— 
‘‘(A) IMPLEMENTATION
ASSISTANCE.—Of 
the funds made available to carry out this chap-
ter, the Secretary shall use not less than 
$37,500,000 to provide payments under this 
paragraph to producers or partners to imple-
ment practices— 
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‘‘(i) to address air quality concerns 
from agricultural operations; and 
‘‘(ii) meet Federal, State, and local 
regulatory requirements. 
‘‘(B) AVAILABILITY AND USE.—The funds 
shall be— 
‘‘(i) made available on the basis of air 
quality concerns in a State; and 
‘‘(ii) used to provide payments to pro-
ducers that are cost-effective and reflect 
innovative technologies. 
‘‘(3) CONSERVATION
STEWARDSHIP
INITIA-
TIVE.— 
‘‘(A) IN
GENERAL.—The Secretary may 
use funds made available to carry out this chap-
ter for conservation stewardship initiatives to 
address resource concerns in a comprehensive 
manner by— 
‘‘(i) undertaking additional conserva-
tion activities; and 
‘‘(ii) 
improving, 
maintaining, 
and 
managing existing conservation activities. 
‘‘(B) SUBMISSION OF CONTRACT OR PART-
NERSHIP AGREEMENT OFFERS.—To be eligible 
to participate in the conservation stewardship 
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initiative and receive an initiative payment, a 
producer or partner shall submit to the Sec-
retary for approval a contract or partnership 
agreement offer that— 
‘‘(i) demonstrates to the satisfaction 
of the Secretary that the producer or part-
ner, at the time of the contract or partner-
ship agreement offer, is meeting the stew-
ardship threshold for at least 1 resource 
concern; and 
‘‘(ii) would, at a minimum, meet or 
exceed the stewardship threshold for at 
least 2 priority resource concerns by the 
end of the contract or partnership agree-
ment by— 
‘‘(I) installing and adopting addi-
tional conservation activities; and 
‘‘(II) 
improving, 
maintaining, 
and managing conservation activities 
in place at the operation of the pro-
ducer at the time the contract or part-
nership agreement offer is accepted by 
the Secretary. 
‘‘(C) PAYMENT
AMOUNT.—An initiative 
payment to a producer shall be based on the 
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conservation performance to be achieved on eli-
gible land in an amount determined by the Sec-
retary. 
‘‘(4) COMPETITIVE
GRANTS
FOR
INNOVATIVE 
CONSERVATION APPROACHES.— 
‘‘(A) IN
GENERAL.—The Secretary may 
use funds made available to carry out this chap-
ter to pay the cost of competitive grants that 
are intended to stimulate innovative approaches 
to leveraging the Federal investment in environ-
mental enhancement and protection, in conjunc-
tion with agricultural production or forest re-
source management, through the program. 
‘‘(B) USE.—The Secretary may provide 
grants under this paragraph to governmental 
and nongovernmental organizations, individuals, 
and legal entities, on a competitive basis, to 
carry out projects that— 
‘‘(i) involve producers or partners who 
are eligible for payments or technical as-
sistance under the program; 
‘‘(ii) leverage Federal funds made 
available to carry out the program with 
matching funds provided by State and 
local governments and private organiza-
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tions to promote environmental enhance-
ment and protection in conjunction with 
agricultural production; 
‘‘(iii) ensure efficient and effective 
transfer of innovative technologies and ap-
proaches demonstrated through projects 
that receive funding under this paragraph, 
such as market systems for pollution re-
duction and practices for the storage of 
carbon in soil; and 
‘‘(iv) provide environmental and re-
source conservation benefits through in-
creased participation by producers of spe-
cialty crops. 
‘‘(5) ORGANIC PRODUCTION CONSERVATION INI-
TIATIVES.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide payments under this paragraph for con-
servation practices, on some or all of the oper-
ations of a producer or partner, relating to— 
‘‘(i) organic production; and 
‘‘(ii) the transition to organic produc-
tion. 
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‘‘(B) ELIGIBILITY REQUIREMENTS.—As a 
condition for receiving payments under this 
paragraph, a producer or partner shall agree— 
‘‘(i) to develop and carry out an or-
ganic system plan in furtherance of 
transitioning to organic production; or 
‘‘(ii) to develop and implement con-
servation practices for certified organic 
production that are consistent with an or-
ganic system plan and the purposes of the 
program. 
‘‘(C) PAYMENT LIMITATIONS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), payments under this paragraph to a 
person or legal entity, directly or indi-
rectly, may not exceed, in the aggregate, 
$20,000 per year or $80,000 in payments 
made pursuant to contracts or partnership 
agreements entered into during the period 
of fiscal years 2013 through 2017. 
‘‘(ii) TECHNICAL
ASSISTANCE
EX-
CLUDED.—In applying clause (i), the Sec-
retary shall not take into account pay-
ments received for technical assistance. 
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‘‘(D) EXCLUSION
OF
CERTAIN
ORGANIC 
CERTIFICATION COSTS.—Payments may not be 
made under this paragraph to cover the costs 
associated with organic certification that are el-
igible for cost-share payments under section 
10606 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 6523). 
‘‘(E) TERMINATION
OF
CONTRACTS
OR 
PARTNERSHIP
AGREEMENTS.—The Secretary 
may cancel or otherwise nullify a contract or 
partnership agreement to provide payments 
under this paragraph if the Secretary deter-
mines that the producer— 
‘‘(i) is not pursuing organic certifi-
cation; or 
‘‘(ii) is not in compliance with the Or-
ganic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.). 
‘‘(6) WATER
CONSERVATION
OR
IRRIGATION 
EFFICIENCY INITIATIVE.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide payments under this paragraph to a 
producer or partner for a water conservation or 
irrigation practice. 
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‘‘(B) PRIORITY.—In providing payments to 
a producer or partner for a water conservation 
or irrigation practice, the Secretary shall give 
priority to applications in which— 
‘‘(i) consistent with the law of the 
State in which the eligible land of the pro-
ducer or partner is located, there is a re-
duction in water use in the operation of 
the producer or partner; or 
‘‘(ii) the producer or partner agrees 
not to use any associated water savings to 
bring new land, other than incidental land 
needed for efficient operations, under irri-
gated production, unless the producer or 
partner is participating in a watershed- 
wide project that will effectively conserve 
water, as determined by the Secretary. 
‘‘(7) WILDLIFE HABITAT INITIATIVE.— 
‘‘(A) IN
GENERAL.—Of the funds made 
available to carry out this chapter, the Sec-
retary, in consultation with the State technical 
committees established under section 1261, 
shall make available to producers and owners of 
eligible land not less than $85,000,000 to pro-
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vide payments for the development of wildlife 
habitat, including— 
‘‘(i) upland wildlife habitat; 
‘‘(ii) wetland wildlife habitat; 
‘‘(iii) habitat for threatened or endan-
gered species; 
‘‘(iv) fish habitat; 
‘‘(v) aquatic wildlife habitat associated 
with riparian or submerged land, even if 
the land is subject to title being held by 
the State when submerged if consistent 
with State law; and 
‘‘(vi) other types of wildlife habitat 
approved by the Secretary, including habi-
tat developed on pivot corners and irreg-
ular areas. 
‘‘(B) PRIORITY FOR CERTAIN CONSERVA-
TION INITIATIVES.—In carrying out this para-
graph, the Secretary may give priority to 
projects that would address issues raised by 
State, regional, and national conservation initia-
tives. 
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‘‘SEC. 1240D. FUNDING. 
‘‘(a) IN GENERAL.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out 
this chapter $2,250,000,000 for each fiscal year. 
‘‘(b) PAYMENT LIMITATIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
person or legal entity may not receive, directly or in-
directly, practice payments or incentive payments 
under this chapter that, in the aggregate, exceed 
$300,000 for all contracts or partnership agree-
ments entered into under this chapter by the person 
or legal entity during the period of fiscal years 2013 
through 2017 (excluding funding arrangements with 
federally recognized Native American Indian tribes 
or Alaska Native Corporations under section 
1240A(f)), regardless of the number of contracts or 
partnership agreements entered into under this 
chapter by the person or entity. 
‘‘(2) WAIVER AUTHORITY.—In the case of con-
tracts or partnership agreements under this chapter 
for projects of special environmental significance (in-
cluding projects involving methane digesters), as de-
termined by the Secretary, the Secretary may— 
‘‘(A) waive the limitation otherwise appli-
cable under paragraph (1); and 
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‘‘(B) raise the limitation to not more than 
$450,000 for all contracts or partnership agree-
ments entered into during the period of fiscal 
years 2013 through 2017.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 344(f)(8) of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1344(f)(8)) is 
amended by striking ‘‘environmental quality incen-
tives program’’ and inserting ‘‘working land pro-
gram’’. 
(2) Section 377 of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1377) is amended by striking 
‘‘environmental quality incentives program’’ and in-
serting ‘‘working land program’’. 
(3) Section 101(1) of the Department of Agri-
culture and Farm Credit Administration Appropria-
tion Act, 1959 (7 U.S.C. 1831a(1)) is amended by 
striking ‘‘environmental quality incentives program’’ 
and inserting ‘‘working land program’’. 
(4) Section 1271(c)(3)(C) of the Forest Stew-
ardship Act of 1990 (16 U.S.C. 2106a(c)(3)(C)) is 
amended by striking ‘‘environmental quality incen-
tives program’’ and inserting ‘‘working land pro-
gram’’. 
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(5) Section 202(c) of the Colorado River Basin 
Salinity Control Act (43 U.S.C. 1592(c)) is amended 
by striking ‘‘environmental quality incentives pro-
gram’’ and inserting ‘‘working land program’’. 
(6) Section 1211(a)(3)(A) of the Food Security 
Act of 1985 (16 U.S.C. 3811(a)(3)(A)) is amended 
by striking ‘‘environmental quality incentives pro-
gram’’ and inserting ‘‘working land program’’. 
(7) Section 1221(b)(3)(A) of the Food Security 
Act of 1985 (16 U.S.C. 3821(b)(3)(A)) is amended 
by striking ‘‘environmental quality incentives pro-
gram’’ and inserting ‘‘working land program’’. 
Subtitle D—Other Conservation 
Programs 
SEC. 2301. OTHER CONSERVATION PROGRAMS OF THE 
FOOD SECURITY ACT OF 1985. 
(a) CONSERVATION OF PRIVATE GRAZING LAND.— 
Section 1240M(e) of the Food Security Act of 1985 (16 
U.S.C. 3839bb(e)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2017’’. 
(b) GRASSROOTS SOURCE WATER PROTECTION PRO-
GRAM.—Section 1240O(b) of the Food Security Act of 
1985 (16 U.S.C. 3839bb–2(b)) is amended by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
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(c) GREAT LAKES BASIN PROGRAM FOR SOIL ERO-
SION AND SEDIMENT CONTROL.—Section 1240P(d) of the 
Food Security Act of 1985 (16 U.S.C. 3839bb–3(d)) is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
(d) CHESAPEAKE BAY WATERSHED PROGRAM.—Sec-
tion 1240Q of the Food Security Act of 1985 (16 U.S.C. 
3839bb–4) is amended by striking subsection (h) and in-
serting the following: 
‘‘(h) FUNDING.—There is authorized to be appro-
priated to carry out this section $50,000,000 for each of 
fiscal years 2012 through 2017.’’. 
(e) VOLUNTARY PUBLIC ACCESS AND HABITAT IN-
CENTIVE PROGRAM.—Section 1240R(f) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb–5(f)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 2302. FUNDING OF CONSERVATION PROGRAMS UNDER 
FOOD SECURITY ACT OF 1985. 
(a) IN GENERAL.—Section 1241(a) of the Food Se-
curity Act of 1985 (16 U.S.C. 3841(a)) is amended in the 
matter preceding paragraph (1) by striking ‘‘2012’’ and 
inserting ‘‘2017’’. 
(b) CONSERVATION RESERVE PROGRAM.—Section 
1241(a)(1) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(1)) is amended by striking ‘‘2012’’ each place it 
appears and inserting ‘‘2017’’. 
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(C) by striking paragraphs (2), (3), and 
(5); and 
(D) by redesignating paragraphs (4) and 
(6) as paragraphs (2) and (3), respectively. 
(d) REGIONAL EQUITY.—Section 1241 of the Food 
Security Act of 1985 (16 U.S.C. 3841) is amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsections (e) through (h) 
as subsections (d) through (g), respectively. 
(e) ASSISTANCE TO CERTAIN FARMERS OR RANCH-
ERS FOR CONSERVATION ACCESS.—Subsection (f) of sec-
tion 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) (as redesignated by subsection (d)(2)) is amend-
ed— 
(1) in paragraph (1), in the matter preceding 
subparagraph (A), by striking ‘‘made available for’’ 
and all that follows through ‘‘shall use’’ and insert-
ing ‘‘and acres made available for each of fiscal 
years 2012 through 2017 to carry out the working 
land program, the Secretary shall use’’; and 
(2) in paragraph (3), by striking ‘‘conservation 
stewardship program’’ and inserting ‘‘working land 
program’’. 
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SEC. 2303. COOPERATIVE CONSERVATION PARTNERSHIP 
INITIATIVE. 
(a) INITIATIVE PROGRAMS.—Section 1243(c) of the 
Food Security Act of 1985 (16 U.S.C. 3843(c)) is amend-
ed by striking paragraph (2) and inserting the following: 
‘‘(2) LIMITATION
AND
COORDINATION
WITH 
THE CONSERVATION RESERVE PROGRAM.— 
‘‘(A) IN
GENERAL.—The Initiative shall 
not include the conservation reserve program. 
‘‘(B) COORDINATION.—The Secretary shall 
coordinate implementation of the cooperative 
conservation partnership initiative and those 
portions of the conservation reserve program el-
igible for continuous enrollment.’’. 
(b) APPLICATIONS.—Section 1243(f)(2) of the Food 
Security Act of 1985 (16 U.S.C. 3843(f)(2)) is amended— 
(1) in subparagraph (A), by inserting ‘‘, and 
may consider applications that have identified pro-
ducers for participation in the project’’ before the 
semicolon at the end; 
(2) in subparagraph (D), by striking ‘‘or’’ at 
the end; 
(3) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(4) by inserting after subparagraph (D) the fol-
lowing: 
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‘‘(E) will benefit economic development of 
rural communities, including as integrated into 
local economic development plans; or’’. 
(c) RELATIONSHIP TO COVERED PROGRAMS.—Sec-
tion 1243(g) of the Food Security Act of 1985 (16 U.S.C. 
3843(g)) is amended by adding at the end the following: 
‘‘(3) ADJUSTMENT OF PROGRAMS BY ELIGIBLE 
PARTNERS.—The Secretary shall allow eligible part-
ners to adjust conservation programs during the im-
plementation phase if the adjustments— 
‘‘(A) achieve purposes consistent with the 
purposes of this section; and 
‘‘(B) are approved by the Secretary prior 
to the adjustments being implemented.’’. 
(d) FUNDING.—Section 1243(i) of the Food Security 
Act of 1985 (16 U.S.C. 3843(i)) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) RESERVATION.—Of the funds and acres 
made available for each fiscal year to implement the 
programs described in subsection (c)(1), to ensure 
an adequate source of funds and acres for the Initia-
tive, the Secretary shall reserve— 
‘‘(A) for fiscal year 2013, 10 percent of 
the funds and acres; 
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‘‘(B) for fiscal year 2014, 12.5 percent of 
the funds and acres; and 
‘‘(C) for fiscal year 2015 and each fiscal 
year thereafter, 15 percent of the funds and 
acres.’’; and 
(2) in paragraph (4)— 
(A) by striking ‘‘Overhead’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—Overhead’’; and 
(B) by adding at the end the following: 
‘‘(B) TECHNICAL
ASSISTANCE.—The use 
of funds for technical assistance to achieve con-
servation goals— 
‘‘(i) is not subject to subparagraph 
(A); and 
‘‘(ii) is subject to review by the Sec-
retary.’’. 
SEC. 2304. ADMINISTRATIVE REQUIREMENTS FOR CON-
SERVATION PROGRAMS. 
Section 1244 of the Food Security Act of 1985 (16 
U.S.C. 3844) is amended— 
(1) in subsection (c)— 
(A) in paragraph (1)(C), by striking ‘‘wet-
lands reserve program’’ and inserting ‘‘ease-
ment benefits program’’; and 
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(B) in paragraph (2), by striking ‘‘environ-
mental quality incentives program’’ and insert-
ing ‘‘working land program’’; and 
(2) by striking subsection (i) and inserting the 
following: 
‘‘(i) CONSERVATION APPLICATION PROCESS.— 
‘‘(1) INITIAL APPLICATION.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
the Secretary shall establish a single, simplified 
application for eligible entities to use in initially 
requesting assistance under any conservation 
program administered by the Secretary (re-
ferred to in this subsection as the ‘initial appli-
cation’). 
‘‘(B) REQUIREMENTS.—To the maximum 
extent practicable, the Secretary shall ensure 
that— 
‘‘(i) a conservation program applicant 
is not required to provide information that 
is duplicative of information or resources 
already available to the Secretary for that 
applicant and the specific operation of the 
applicant; and 
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‘‘(ii) the initial application process is 
streamlined to minimize complexity and re-
dundancy. 
‘‘(2) REVIEW OF APPLICATION PROCESS.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
the Secretary shall review the application proc-
ess for each conservation program administered 
by the Secretary, including the forms and proc-
esses used to receive assistance requests from 
eligible program participants. 
‘‘(B) REQUIREMENTS.—In carrying out 
the review, the Secretary shall determine what 
information the participant is required to sub-
mit during the application process, including— 
‘‘(i) identification information for the 
applicant; 
‘‘(ii) identification and location infor-
mation for the land parcel or tract of con-
cern; 
‘‘(iii) a general statement of the need 
or resource concern of the applicant for the 
land parcel or tract; and 
‘‘(iv) the minimum amount of other 
information the Secretary considers to be 
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essential for the applicant to provide per-
sonally. 
‘‘(3) REVISION AND STREAMLINE.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
the Secretary shall carry out a revision of the 
application forms and processes for each con-
servation program administered by the Sec-
retary to enable use of information technology 
to incorporate appropriate data and information 
concerning the conservation needs and solutions 
appropriate for the land area identified by the 
applicant. 
‘‘(B) GOAL.—The goal of the revision shall 
be to streamline the application process to mini-
mize the burden placed on applicants. 
‘‘(4) CONSERVATION PROGRAM APPLICATION.— 
‘‘(A) IN GENERAL.—Once the needs of an 
applicant have been adequately assessed by the 
Secretary, or a third party provider under sec-
tion 1242, based on the initial application, in 
order to determine the 1 or more programs 
under this title that best match the needs of the 
applicant, with the approval of the applicant, 
the Secretary may convert the initial application 
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into the specific application for assistance for 
the relevant conservation program. 
‘‘(B) 
SECRETARIAL
BURDEN.—To 
the 
maximum extent practicable, the Secretary 
shall— 
‘‘(i) complete the specific application 
for conservation program assistance for 
each applicant; and 
‘‘(ii) request only that specific further 
information from the applicant that is not 
already available to the Secretary. 
‘‘(5) IMPLEMENTATION
AND
NOTIFICATION.— 
Not later than 1 year after the date of enactment 
of this subsection, the Secretary shall submit to the 
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate written notifica-
tion that the Secretary has fulfilled the requirements 
of this subsection.’’. 
SEC. 2305. REPEAL OF HEALTHY FORESTS RESERVE PRO-
GRAM. 
Title V of the Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6571 et seq.) is repealed. 
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TITLE III—NUTRITION 
Subtitle A—Supplemental 
Nutrition Assistance Program 
SEC. 3001. CATEGORICAL ELIGIBILITY LIMITATIONS. 
Section 5 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014) is amended— 
(1) by striking the section heading and all that 
follows through ‘‘(a) Participation’’ and inserting the 
following: 
‘‘SEC. 5. ELIGIBLE HOUSEHOLDS. 
‘‘(a) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Participation’’; 
(2) in subsection (a)— 
(A) by striking the second sentence and in-
serting the following: 
‘‘(2) RECIPIENTS OF OTHER FEDERAL BENE-
FITS.—Except as provided in section 3(n)(4) and 
subsections (b), (d)(2), and (g) of section 6, a house-
hold shall be eligible to participate in the supple-
mental nutrition assistance program if each member 
of the household receives— 
‘‘(A) cash assistance in the form of ongo-
ing basic needs benefit payments for financially 
needy families under the program of block 
grants to States for temporary assistance for 
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needy families established under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et 
seq.); 
‘‘(B) cash assistance under the supple-
mental security income program established 
under title XVI of that Act (42 U.S.C. 1381 et 
seq.); or 
‘‘(C) aid to the aged, blind, or disabled 
under title I, X, XIV, or XVI of that Act (42 
U.S.C. 301 et seq.).’’; 
(B) in the third sentence, by striking ‘‘Ex-
cept for sections 6, 16(e)(1), and section 
3(n)(4), households’’ and inserting the fol-
lowing: 
‘‘(3) GENERAL
ASSISTANCE.—Except as pro-
vided in sections 3(n)(4), 6, and 16(e)(1), a house-
hold’’; and 
(C) in the fourth sentence, by striking 
‘‘Assistance’’ and inserting the following: 
‘‘(4) APPLICATIONS.—Assistance’’; and 
(3) in subsection (j)— 
(A) by inserting ‘‘cash assistance in the 
form of’’ before ‘‘supplemental security income 
benefits’’; and 
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(B) by striking ‘‘or who receives benefits’’ 
and inserting ‘‘or who receives cash assistance’’. 
SEC. 3002. REPEAL OF FUNDING FOR EMPLOYMENT AND 
TRAINING PROGRAMS. 
(a) IN GENERAL.—Section 6(d)(4) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amend-
ed— 
(1) by striking ‘‘(A) IN GENERAL.—’’; and all 
that follows through ‘‘the following components’’ in 
the matter preceding clause (i) in subparagraph (B) 
and inserting the following: 
‘‘(A) DEFINITION
OF
EMPLOYMENT
AND 
TRAINING
PROGRAM.—In this Act, the term 
‘employment and training program’ means a 
Federal, State, or private program not adminis-
tered by the Secretary or funded through the 
Food and Nutrition Service that contains 1 or 
more of the following components’’; 
(2) by striking clause (viii) in subparagraph (A) 
(as designated in paragraph (1)) and inserting the 
following: 
‘‘(viii) As approved by the State, other 
employment, educational and training pro-
grams, projects, and experiments, such as 
a supported work program, aimed at ac-
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complishing the purpose of the employment 
and training program.’’; 
(3) in subparagraph (E), by striking ‘‘subpara-
graph (D)’’ and inserting ‘‘subparagraph (C)’’; 
(4) by striking subparagraphs (H) through (K); 
and 
(5) by redesignating subparagraphs (C) through 
(G) and (L) and (M) as subparagraphs (B) through 
(F) and (G) and (H), respectively. 
(b) REPEAL OF FUNDING.—Section 16 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2025) is amended 
by striking subsection (h). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 5(d) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(d)) is amended— 
(A) by striking paragraph (14); and 
(B) by redesignating paragraphs (15) 
through (19) as paragraphs (14) through (18), 
respectively. 
(2) Section 17(b)(1)(B)(iv)(III) of the Food 
and 
Nutrition 
Act 
of 
2008 
(7 
U.S.C. 
2026(b)(1)(B)(iv)(III)) is amended— 
(A) in item (dd), by striking ‘‘, (4)(F)(i) or 
(4)(K)’’ and inserting ‘‘or (4)(E)’’; and 
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(B) in item (hh), by striking ‘‘(g), (h)(2), 
or (h)(3) of section 16’’ and inserting ‘‘or (g) 
of section 16’’. 
SEC. 3003. REPEAL OF INCENTIVE PAYMENTS TO STATES 
WITH 
LOW 
SNAP 
BENEFIT 
ALLOCATION 
ERROR RATES. 
(a) IN GENERAL.—Section 16 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2025) is amended by striking 
subsection (d). 
(b) CONFORMING AMENDMENTS.—Section 16 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2025) is 
amended— 
(1) in subsection (c), by striking ‘‘, or perform-
ance under the performance measures under sub-
section (d)’’ each place it appears in paragraphs (4) 
and (5); and 
(2) in subsection (i)(1), by striking ‘‘as defined 
in subsection (d)(1))’’ and inserting ‘‘as defined in 
guidance issued by the Secretary’’. 
SEC. 3004. QUALITY CONTROL. 
(a) IN GENERAL.—Section 16(c) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025(c)) is amended— 
(1) in paragraph (1)— 
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(A) in subparagraph (D)(i)(II), by insert-
ing ‘‘except as provided in clause (iii),’’ before 
‘‘require’’; and 
(B) by adding at the end the following: 
‘‘(H) STATES IN LIABILITY STATUS FOR A 
THIRD CONSECUTIVE FISCAL YEAR.— 
‘‘(i) IN
GENERAL.—If a liability 
amount has been established for a State 
agency under subparagraph (C) for 3 or 
more consecutive fiscal years, the Sec-
retary shall require the State to pay the 
entire liability amount for those fiscal 
years. 
‘‘(ii) ALTERNATIVES
TO
FULL
PAY-
MENT
NOT
AVAILABLE.—Subparagraph 
(D) shall not apply to a State agency de-
scribed in clause (i).’’; and 
(2) by redesignating paragraph (9) as para-
graph (10); and 
(3) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) PENALTY FOR NEGATIVE ERROR RATE.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) AFFECTED STATE AGENCY.—The 
term ‘affected State agency’ means a State 
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agency that maintains, for 2 or more con-
secutive fiscal years, a negative error rate 
that is more than 50 percent higher than 
the national average negative error rate, as 
determined by the Secretary. 
‘‘(ii) 
AVERAGE
NEGATIVE
ERROR 
RATE.—The term ‘average negative error 
rate’ means the product obtained by multi-
plying— 
‘‘(I) the negative error rate of a 
State agency; and 
‘‘(II) the proportion of the total 
negative caseload of that State agency 
for the fiscal year, as calculated under 
the quality control sample at the time 
of the notifications issued under sub-
paragraph (C), as determined by the 
Secretary. 
‘‘(iii) NEGATIVE ERROR RATE.— 
‘‘(I) IN
GENERAL.—The term 
‘negative error rate’ means, for a 
State agency, the proportion that— 
‘‘(aa) the total number of 
actions erroneously taken by the 
State agency to deny applications 
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or suspend or terminate benefits 
of a household participating in 
the supplemental nutrition assist-
ance program established under 
this Act, as determined by the 
Secretary, in that fiscal year; 
bears to 
‘‘(bb) the total number of 
actions taken by the State agency 
to deny applications or suspend 
or terminate benefits of house-
holds participating in the supple-
mental nutrition assistance pro-
gram established under this Act 
in that fiscal year. 
‘‘(II) EXCLUSIONS.—The term 
‘negative error rate’ does not in-
clude— 
‘‘(aa) an error resulting 
from the application of regula-
tions promulgated under this Act 
during the period— 
‘‘(AA) beginning on the 
date of enactment of this 
clause; and 
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‘‘(BB) ending on date 
that is 121 days after the 
date on which the regulation 
is implemented; and 
‘‘(bb) an error resulting 
from— 
‘‘(AA) the use by a 
State agency of correctly 
processed information con-
cerning households or indi-
viduals received under a 
Federal program; or 
‘‘(BB) an action that is 
based on policy information 
that is approved or dissemi-
nated, in writing, by the 
Secretary or a designee of 
the Secretary. 
‘‘(B) PENALTY AMOUNT.—For fiscal year 
2012 and each subsequent fiscal year, the 
amount of the penalty for an affected State 
agency shall be equal to 5 percent of the 
amount otherwise payable under subsection (a). 
‘‘(C) 
INFORMATION
REPORTING
BY 
STATES.— 
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‘‘(i) IN
GENERAL.—For each fiscal 
year, each State agency shall expeditiously 
submit to the Secretary data concerning 
the operations of the State agency suffi-
cient for the Secretary to establish the 
negative error rate and penalty amount of 
the State agency. 
‘‘(ii) RELEVANT INFORMATION.—The 
Secretary may require a State agency to 
report any factors necessary to determine 
the negative error rate of the State agency. 
‘‘(iii) 
INFORMATION
NOT
RE-
PORTED.—If a State agency fails to report 
information required by the Secretary, the 
Secretary may use any information, as the 
Secretary considers appropriate, to estab-
lish the negative error rate of the State 
agency for the applicable year. 
‘‘(iv) 
NATIONAL
AVERAGE
ERROR 
RATE.—If a State agency fails to report in-
formation required by the Secretary, the 
Secretary may use the national average 
negative error rate to establish the nega-
tive error rate for the State agency. 
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‘‘(D) 
ANNOUNCEMENT
OF
ERROR 
RATES.— 
‘‘(i) CASE
REVIEW.—Not later than 
May 31 of each fiscal year, the case review 
and all arbitration of State-Federal dif-
ferences on negative error rates for the 
previous fiscal year shall be completed. 
‘‘(ii) 
DETERMINATION
AND
AN-
NOUNCEMENT.—Not later than June 30 of 
each fiscal year, the Secretary shall, for 
the previous fiscal year— 
‘‘(I) determine— 
‘‘(aa) final negative error 
rates; 
‘‘(bb) the national average 
negative error rate; and 
‘‘(cc) penalty amounts; 
‘‘(II) notify affected State agen-
cies of the penalty amounts; 
‘‘(III) provide a copy of the noti-
fication under subclause (II) to the 
chief executive officer and the legisla-
ture of the affected State; and 
‘‘(IV) establish a claim against 
the State agency for the monetary 
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penalty amount assessed against the 
State agency. 
‘‘(E) REVIEW.— 
‘‘(i) IN
GENERAL.—For any fiscal 
year, if the Secretary imposes a penalty 
amount against a State agency under sub-
paragraph (D)(ii), the following determina-
tions of the Secretary shall be subject to 
administrative and judicial review: 
‘‘(I) The final negative error rate 
of the State agency. 
‘‘(II) A determination of the Sec-
retary that the negative error rate of 
the State agency exceeds 50 percent 
of the national average negative error 
rate. 
‘‘(III) 
The 
monetary 
penalty 
amount assessed against the State 
agency. 
‘‘(ii) DETERMINATION
NOT
REVIEW-
ABLE.—The national average negative 
error rate under this paragraph shall not 
be subject to administrative or judicial re-
view. 
‘‘(F) PAYMENT OF PENALTY AMOUNT.— 
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‘‘(i) IN GENERAL.—On completion of 
administrative and judicial review under 
subparagraph (E), an affected State agen-
cy shall pay to the Secretary the penalty 
amount designated under subparagraph 
(D)(ii), subject to the findings of the ad-
ministrative or judicial review, not later 
than September 30 of the fiscal year for 
which the claim has been issued to the 
State agency. 
‘‘(ii) ALTERNATIVE METHOD OF COL-
LECTION.— 
‘‘(I) IN
GENERAL.—If a State 
agency fails to make a payment under 
clause (i) by September 30 of the fis-
cal year for which the claim has been 
issued to the State agency, the Sec-
retary may reduce any amount due to 
the State agency under any other pro-
vision of this Act by the amount of 
the 
monetary 
penalty 
established 
under subparagraph (D)(ii). 
‘‘(II) ACCRUAL OF INTEREST.— 
Interest on the amount owed shall not 
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accrue until after September 30 of the 
applicable fiscal year.’’. 
Subtitle B—Extensions 
SEC. 3101. SUPPLEMENTAL NUTRITION ASSISTANCE PRO-
GRAM. 
(a) FOOD DISTRIBUTION PROGRAM ON INDIAN RES-
ERVATIONS.—Section 4(b)(6)(F) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
(b) PROJECTS TO EVALUATE HEALTH AND NUTRI-
TION PROMOTION IN THE SUPPLEMENTAL NUTRITION 
ASSISTANCE PROGRAM.—Section 17(k)(5)(A) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2026(k)(5)(A)) is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(a)(1)) is amended in the first sentence by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
(d) HEALTHY URBAN FOOD ENTERPRISE DEVELOP-
MENT CENTER.—Section 25(h)(9) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2034(h)(9)) is amended— 
(1) in subparagraph (A), by striking ‘‘2011’’ 
and inserting ‘‘2017’’; and 
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(2) in subparagraph (B), by striking ‘‘fiscal 
year 2012’’ and inserting ‘‘each of fiscal years 2012 
through 2017’’. 
(e) EMERGENCY FOOD ASSISTANCE.— 
(1) 
PURCHASE
OF
COMMODITIES.—Section 
27(a) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2036(a)) is amended in paragraphs (1) and 
(2)(C) by striking ‘‘2012’’ each place it appears and 
inserting ‘‘2017’’. 
(2) EMERGENCY FOOD PROGRAM INFRASTRUC-
TURE GRANTS.—Section 209(d) of the Emergency 
Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
(f) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 3 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2012) is amended— 
(A) in subsection (g), by striking ‘‘cou-
pon,’’ and inserting ‘‘coupon’’; 
(B) in subsection (k)(7), by striking ‘‘or 
are’’ and inserting ‘‘and’’; 
(C) by striking subsection (l); 
(D) by redesignating subsections (m) 
through (t) as subsections (l) through (s), re-
spectively; and 
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(E) by inserting after subsection (s) (as so 
redesignated) the following: 
‘‘(t) ‘Supplemental nutritional assistance program’ 
means the program operated pursuant to this Act.’’. 
(2) Section 4(a) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2013(a)) is amended in the last 
sentence by striking ‘‘benefits’’ and inserting ‘‘Bene-
fits’’. 
(3) Section 5 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2014) is amended— 
(A) in the last sentence of subsection 
(i)(2)(D), by striking ‘‘section 13(b)(2)’’ and in-
serting ‘‘section 13(b)’’; and 
(B) in subsection (k)(4)(A), by striking 
‘‘paragraph (2)(H)’’ and inserting ‘‘paragraph 
(2)(G)’’. 
(4) Section 7(h) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2016(h)) is amended by redesig-
nating the second paragraph (12) (relating to inter-
change fees) as paragraph (13). 
(5) Section 9(a) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2018(a)) is amended by indenting 
paragraph (3) appropriately. 
(6) Section 12 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2021) is amended— 
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(A) in subsection (b)(3)(C), by striking 
‘‘civil money penalties’’ and inserting ‘‘civil pen-
alties’’; and 
(B) in subsection (g)(1), by striking ‘‘(7 
U.S.C. 1786)’’ and inserting ‘‘(42 U.S.C. 
1786)’’. 
(7) Section 15(b)(1) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2024(b)(1)) is amended in 
the first sentence by striking ‘‘an benefit’’ and in-
serting ‘‘a benefit’’. 
(8) Section 16(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(a)) is amended in the 
proviso following paragraph (8) by striking ‘‘as 
amended.’’. 
(9) Section 18(e) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2027(e)) is amended in the first 
sentence by striking ‘‘sections 7(f)’’ and inserting 
‘‘section 7(f)’’. 
(10) Section 22(b)(10)(B)(i) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) 
is amended in the last sentence by striking ‘‘Food 
benefits’’ and inserting ‘‘Benefits’’. 
(11) Section 26(f)(3)(C) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is amend-
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ed by striking ‘‘subsection’’ and inserting ‘‘sub-
sections’’. 
(12) Section 27(a)(1) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2036(a)(1)) is amended 
by striking ‘‘(Public Law 98–8; 7 U.S.C. 612c 
note)’’ and inserting ‘‘(7 U.S.C. 7515)’’. 
(13) Section 509 of the Older Americans Act of 
1965 (42 U.S.C. 3056g) is amended in the section 
heading by striking ‘‘FOOD STAMP PROGRAMS’’ 
and inserting ‘‘SUPPLEMENTAL NUTRITION AS-
SISTANCE PROGRAMS’’. 
(14) Section 4115(c)(2)(H) of the Food, Con-
servation, and Energy Act of 2008 (Public Law 
110–246; 122 Stat. 1871) is amended by striking 
‘‘531’’ and inserting ‘‘454’’. 
SEC. 3102. COMMODITY DISTRIBUTION PROGRAMS. 
(a) COMMODITY DISTRIBUTION PROGRAM.—Section 
4(a) of the Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note; Public Law 93–86) is amended 
in the first sentence by striking ‘‘2012’’ and inserting 
‘‘2017’’. 
(b) COMMODITY SUPPLEMENTAL FOOD PROGRAM.— 
Section 5 of the Agriculture and Consumer Protection Act 
of 1973 (7 U.S.C. 612c note; Public Law 93–86) is 
amended— 
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(1) in paragraphs (1) and (2)(B) of subsection 
(a), by striking ‘‘2012’’ each place it appears and in-
serting ‘‘2017’’; and 
(2) in the first sentence of subsection (d)(2), by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
(c) DISTRIBUTION OF SURPLUS COMMODITIES TO 
SPECIAL NUTRITION PROJECTS.—Section 1114(a)(2)(A) 
of the Agriculture and Food Act of 1981 (7 U.S.C. 
1431e(2)(A)) is amended in the first sentence by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 3 of the Commodity Distribution 
Reform Act and WIC Amendments of 1987 (7 
U.S.C. 612c note; Public Law 100–237) is amend-
ed— 
(A) in subsection (a)— 
(i) in paragraph (2), by striking sub-
paragraph (B) and inserting the following: 
‘‘(B) the supplemental nutrition assistance 
program established under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2011 et seq.);’’; and 
(ii) in paragraph (3)(D), by striking 
‘‘the Committee on Education and Labor’’ 
and inserting ‘‘the Committee on Edu-
cation and the Workforce’’; 
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(B) in subsection (b)(1)(A)(ii), by striking 
‘‘section 32 of the Agricultural Adjustment Act 
(7 U.S.C. 601 et seq.)’’ and inserting ‘‘section 
32 of the Act of August 24, 1935 (7 U.S.C. 
612c)’’; 
(C) in subsection (e)(1)(D)(iii), by striking 
subclause (II) and inserting the following: 
‘‘(II) the supplemental nutrition 
assistance program established under 
the Food and Nutrition Act of 2008 
(7 U.S.C. 2011 et seq.);’’; and 
(D) in subsection (k), by striking ‘‘the 
Committee on Education and Labor’’ and in-
serting ‘‘the Committee on Education and the 
Workforce’’. 
SEC. 3103. MISCELLANEOUS. 
(a) PURCHASE OF FRESH FRUITS AND VEGETABLES 
FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITU-
TIONS.—Section 10603(b) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 612c–4(b)) is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
(b) SENIORS FARMERS’ MARKET NUTRITION PRO-
GRAM.—Section 4402(a) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3007(a)) is amended 
by striking by striking ‘‘2012’’ and inserting ‘‘2017’’. 
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(c) NUTRITION INFORMATION AND AWARENESS PRO-
GRAM.—Section 4403(f) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 
107–171) is amended by striking ‘‘2012’’ and inserting 
‘‘2017’’. 
(d) HUNGER-FREE COMMUNITIES.—Section 4405(e) 
of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 7517(e)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2017’’. 
TITLE IV—ENERGY FROM RURAL 
AMERICA 
SEC. 4001. DEFINITIONS. 
Section 9001 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8101) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (B)(iii), by inserting 
‘‘post-recycled municipal solid waste, sewage 
waste,’’ before ‘‘and yard waste’’; and 
(B) by adding at the end the following: 
‘‘(C) EXCLUSION.—The term ‘advanced 
biofuel’ does not include any fuel for which— 
‘‘(i) more than 4 percent of the fuel 
(determined by weight) is any combination 
of water and sediment; or 
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‘‘(ii) the ash content of the fuel is 
more than 1 percent (determined by 
weight).’’; 
(2) in paragraph (6)— 
(A) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; and’’; 
(B) by redesignating subparagraphs (A) 
through (D) as clauses (i) through (iv), respec-
tively, and indenting appropriately; 
(C) by striking ‘‘a facility that converts’’ 
and inserting the following: ‘‘a facility that— 
‘‘(A) converts’’; and 
(D) by adding at the end the following: 
‘‘(B) in the case of a facility in existence 
as of the date of enactment of the Rural Eco-
nomic Farm and Ranch Sustainability and 
Hunger Act of 2011 that uses less than 90 per-
cent biomass for conversion, agrees to increase 
the use by the facility of biomass for conversion 
purposes by a percentage increase, as deter-
mined by the Secretary but not less than a sub-
stantial increase above the 5-year baseline for 
the facility.’’. 
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(3) by redesignating paragraphs (9) through 
(13) and (14) as paragraphs (10) through (14) and 
(17), respectively; 
(4) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) ELIGIBLE RURAL COMMUNITY.—The term 
‘eligible rural community’ means a community lo-
cated in a rural area.’’; 
(5) in subparagraph (B)(ii) of paragraph (13) 
(as redesignated by paragraph (2)) — 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; 
(B) in subclause (IV), by striking the pe-
riod at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(V) 
post-recycled 
municipal 
solid waste; and 
‘‘(VI) sewage.’’; and 
(6) by inserting after paragraph (14) (as so re-
designated) the following: 
‘‘(15) RURAL AREA.—The term ‘rural area’ has 
the meaning given the term in section 343(a)(13)(A) 
of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(13)(A)). 
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‘‘(16) RURAL
SCHOOL
DISTRICT.—The term 
‘rural school district’ means a school district that 
serves 1 or more schools located in a rural area.’’. 
SEC. 4002. BIOBASED MARKETS PROGRAM. 
(a) IN GENERAL.—Section 9002 of the Farm Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 8102) 
is amended— 
(1) in subsection (a)(4)— 
(A) in subparagraph (B)— 
(i) in the matter preceding clause (i), 
by inserting ‘‘and to improve fiscal trans-
parency in Federal procurement’’ after 
‘‘subparagraph (A)’’; and 
(ii) in clause (i)— 
(I) in the matter preceding sub-
clause (I), by striking ‘‘, to the max-
imum extent practicable,’’; and 
(II) in subclause (V), by striking 
‘‘and’’ at the end; 
(iii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(iv) by adding at the end the fol-
lowing: 
‘‘(iii) information required to be sub-
mitted under clauses (i) and (ii) shall be 
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made publicly available on a website by the 
Office of Federal Procurement Policy not 
later than 30 days after submission of the 
information to the Office of Federal Pro-
curement Policy.’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘, in con-
sultation with the Administrator,’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘(2) ELIGIBILITY CRI-
TERIA.—’’ and all that follows through 
‘‘(B) 
REQUIREMENTS.—Criteria 
issued 
under subparagraph (A)’’ and inserting the 
following: 
‘‘(2) REQUIREMENTS.—Labels issued under 
paragraph (1)’’; and 
(ii) 
by 
redesignating 
clauses 
(i) 
through (iii) as subparagraphs (A) through 
(C), respectively, and indenting appro-
priately; and 
(C) in paragraph (3), by striking ‘‘criteria 
issued pursuant to’’ and inserting ‘‘require-
ments described in’’; 
(3) by striking subsection (c) and inserting the 
following: 
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‘‘(c) PROMOTION.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
competitive grants to eligible entities to provide in-
formation to organizations that have large procure-
ment needs or vehicle fleets, or that produce prod-
ucts with which biobased products or biofuels can be 
integrated (as determined by the Secretary), about 
the benefits of biobased products or biofuels. 
‘‘(2) ELIGIBLE ENTITIES.—To be eligible to re-
ceive a grant under paragraph (1), an entity shall— 
‘‘(A) be a nonprofit organization or institu-
tion of higher education; 
‘‘(B) have demonstrated a knowledge of 
biobased product or biofuel production, use, or 
distribution; and 
‘‘(C) have demonstrated the ability to con-
duct educational and technical support pro-
grams. 
‘‘(3) LIMITATION.—Grants made under this 
subsection may not be used for the marketing or 
promotion of brand name products.’’; 
(4) in subsection (d), by striking ‘‘this section’’ 
and inserting ‘‘subsection (a)’’; 
(5) by striking subsections (e) through (g); 
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(6) by redesignating subsection (h) as sub-
section (e); and 
(7) in subsection (e) (as so redesignated)— 
(A) in paragraph (1), by striking ‘‘this sec-
tion—’’ and all that follows through the end of 
subparagraph (B) and inserting ‘‘this section 
$5,000,000 for each of fiscal years 2013 
through 2017, of which not more than 
$2,000,000 may be used to make grants under 
subsection (c).’’; and 
(B) in paragraph (2), by striking ‘‘this sec-
tion’’ and all that follows through ‘‘2012’’ and 
inserting ‘‘$3,000,000 for each of fiscal years 
2013 through 2017.’’ 
(b) 
CONFORMING
AMENDMENT.—Section 
944(c)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 
16253(c)(2)(A)) 
is 
amended 
by 
striking 
‘‘section 
9002(h)(1) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8102(h)(1)’’ and inserting ‘‘section 
9002(b) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(b))’’. 
SEC. 4003. BIOREFINERY ASSISTANCE. 
Section 9003 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8103) is amended— 
(1) by striking subsections (a), (d), and (g); 
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(2) by redesignating subsections (b), (c), (e), 
(f), and (h) as subsections (a) through (e), respec-
tively; 
(3) in subsection (b) (as so redesignated), by 
striking ‘‘eligible entities—’’ and all that follows 
through ‘‘(2) guarantees’’ and inserting ‘‘eligible en-
tities guarantees’’; 
(4) in subsection (c) (as so redesignated)— 
(A) in paragraph (1)(C) — 
(i) in the matter preceding clause (i), 
by striking ‘‘subsection (c)(2)’’ and insert-
ing ‘‘subsection (b)’’; 
(ii) in clause (ix), by striking ‘‘and’’ 
at the end; 
(iii) in clause (x), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(iv) by adding at the end the fol-
lowing: 
‘‘(xi) whether the project can lead to 
reductions in production costs.’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘subsection (c)(2)’’ 
each place it appears and inserting ‘‘sub-
section (b)’’; and 
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(ii) in subparagraph (C), by striking 
‘‘subsection (h)’’ and inserting ‘‘subsection 
(e)’’; and 
(5) in subsection (e) (as so redesignated)— 
(A) in paragraph (1), by striking subpara-
graphs (A) and (B) and inserting the following: 
‘‘(A) $100,000,000 for fiscal year 2013; 
and 
‘‘(B) $80,000,000 for each of fiscal years 
2014 and 2015.’’; and 
(B) in paragraph (2), by striking ‘‘2012’’ 
and inserting ‘‘2017’’. 
SEC. 4004. RURAL ENERGY FOR AMERICA PROGRAM. 
Section 9007 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8107) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘, rural 
school districts, eligible rural communities,’’ be-
fore ‘‘and rural small businesses’’; and 
(B) in paragraph (4), in the matter pre-
ceding subparagraph (A), by inserting ‘‘, rural 
school districts, eligible rural communities,’’ be-
fore ‘‘and rural small businesses’’; 
(2) in subsection (c)— 
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(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘, rural 
school districts, eligible rural communities,’’ be-
fore ‘‘and rural small businesses’’; 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (4) as paragraphs (3) through (5), re-
spectively; 
(C) by inserting after paragraph (1) the 
following: 
‘‘(2) AWARD PRIORITIZATION.—In determining 
the amount of a loan guarantee or grant provided 
under this section, the Secretary may give priority— 
‘‘(A) to loan guarantees rather than grants 
or combined grant and loan guarantees, so as 
to maximize leverage of private financing; and 
‘‘(B) in the case of energy efficiency 
projects, to loans under section 9014 or similar 
financing mechanisms if locally available (as de-
termined by the Secretary).’’; 
(D) in paragraph (3) (as redesignated by 
subparagraph (A))— 
(i) by striking subparagraph (A) and 
inserting the following: 
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‘‘(A) the ability of a project to demonstrate 
the economic viability for similar potential en-
ergy investment projects in the locality;’’; 
(ii) in subparagraph (F), by striking 
‘‘and’’ at the end; 
(iii) by redesignating subparagraph 
(G) as subparagraph (H); and 
(iv) by inserting after subparagraph 
(F) the following: 
‘‘(G) the type of renewable energy system 
to be purchased; and’’; and 
(E) in paragraph (5) (as so redesig-
nated)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘(A) GRANTS.— 
The amount’’ and inserting the fol-
lowing: 
‘‘(A) GRANTS.— 
‘‘(i) IN GENERAL.—The amount’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(ii) LIMITATION.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), not more than 15 per-
cent of the total amount of funds 
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made available under subsection (f) 
that is allocated by the Secretary for 
grants under this subsection may be 
used for grants in excess of $250,000. 
‘‘(II) 
LIMITATION.—No 
grant 
under this subsection may exceed 
$500,000.’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(D) MAXIMUM AMOUNT OF LOAN GUAR-
ANTEE RELATIVE TO COST OF ACTIVITY FUND-
ED.—The amount of a loan guaranteed under 
this subsection shall not exceed 90 percent of 
the cost of the activity funded under this sub-
section.’’; 
(3) in subsection (e)— 
(A) in paragraph (1), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f) and 
allocated by the Secretary for grants’’; and 
(B) in paragraph (2), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’; 
(4) by striking subsection (f); 
(5) by redesignating subsection (g) as sub-
section (f); and 
(6) in subsection (f) (as so redesignated)— 
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(A) in paragraph (1), by striking ‘‘, to re-
main available until expended—’’ and all that 
follows through the end of subparagraph (D) 
and inserting ‘‘$70,000,000 for each of fiscal 
years 2013 through 2017, to remain available 
until expended.’’; 
(B) by redesignating paragraph (3) as 
paragraph (4); 
(C) by inserting after paragraph (2) the 
following: 
‘‘(3) LIMITATION.—Of the funds made available 
for a fiscal year under paragraph (1), not more than 
10 percent may be made available for grants or loan 
guarantees to rural school districts or eligible rural 
communities.’’; and 
(D) in paragraph (4) (as redesignated by 
subparagraph (B), by striking ‘‘there is author-
ized’’ and all that follows through the end and 
inserting ‘‘there is authorized to be appro-
priated to carry out this section $80,000,000 
for each of fiscal years 2013 through 2017.’’. 
SEC. 4005. REPEAL OF FEEDSTOCK FLEXIBILITY PROGRAM 
FOR BIOENERGY PRODUCERS. 
Section 9010 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8110) is repealed. 
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SEC. 4006. BIOMASS CROP ASSISTANCE PROGRAM. 
Section 9011 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8111) is amended— 
(1) in subsection (a)— 
(A) 
by 
redesignating 
paragraphs 
(4) 
through (8) as paragraphs (5) through (9), re-
spectively; 
(B) by inserting after paragraph (3) the 
following: 
‘‘(4) DELIVERY.—The term ‘delivery’ means 
the point of delivery of an eligible material or an eli-
gible crop, as determined by the Secretary.’’; 
(C) in subparagraph (B) of paragraph (5) 
(as so redesignated)— 
(i) in clause (i), by striking ‘‘that is 
eligible’’ and inserting ‘‘that, as of the day 
before the date of enactment of the Rural 
Economic Farm and Ranch Sustainability 
and Hunger Act of 2011, was eligible’’; 
and 
(ii) in clause (ii), by striking ‘‘or has 
the potential to become invasive or nox-
ious’’; 
(D) in subparagraph (B) of paragraph (6) 
(as so redesignated)— 
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(i) in clause (i), by adding ‘‘or’’ after 
the semicolon at the end; 
(ii) in clause (ii), by striking the semi-
colon at the end and inserting a period; 
and 
(iii) by striking clauses (iii) through 
(v); and 
(E) in paragraph (7) (as so redesig-
nated)— 
(i) by redesignating subparagraph (B) 
as subparagraph (C); 
(ii) by inserting after subparagraph 
(A) the following: 
‘‘(B) ADDITIONAL REQUIREMENT FOR ELI-
GIBLE MATERIAL FROM NON-FEDERAL FOREST 
LAND.—In the case of non-Federal forest land 
and forest land belonging to an Indian or In-
dian tribe that is in trust by the United States 
or subject to a restriction against alienation im-
posed by the United States, the Secretary shall 
ensure that the definition of the term ‘eligible 
material’— 
‘‘(i) ensures that the renewable bio-
mass defined as ‘eligible material’— 
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‘‘(I) is not diverted from use in 
markets as of the date of enactment 
of the Rural Economic Farm and 
Ranch Sustainability and Hunger Act 
of 2011; 
‘‘(II) has been determined to be 
otherwise uneconomically retrievable; 
and 
‘‘(III) is harvested in accordance 
with an approved conservation, forest 
stewardship, or equivalent plan; and 
‘‘(ii) includes a requirement that the 
renewable biomass is harvested directly 
from the land for delivery to a biomass 
conversion facility.’’; and 
(iii) in subparagraph (C) (as redesig-
nated by clause (i))— 
(I) in clause (i)— 
(aa) by striking ‘‘that is eli-
gible’’ and inserting ‘‘that, as of 
the day before the date of enact-
ment of the Rural Economic 
Farm and Ranch Sustainability 
and Hunger Act of 2011, was eli-
gible’’; and 
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(bb) by inserting before the 
semicolon at the end ‘‘, except 
that residues from such crops are 
eligible if harvested from the land 
in accordance with an approved 
conservation or equivalent plan’’; 
and 
(II) in clause (iii), by striking 
‘‘and yard waste’’ and inserting ‘‘, 
yard waste, municipal solid waste, and 
sewage’’; 
(2) in subsection (b)(2), by inserting ‘‘collected 
directly from the land’’ after ‘‘eligible material’’; 
(3) in subsection (c)(5)— 
(A) in subparagraph (B)— 
(i) 
by 
redesignating 
clauses 
(i) 
through (iii) as items (aa) through (cc), re-
spectively, and indenting appropriately; 
(ii) by striking ‘‘shall be up to 75’’ 
and inserting ‘‘shall be— 
‘‘(i) up to 50’’; 
(iii) in item (cc) (as designated by 
clause (i)), by striking the period at the 
end and inserting ‘‘; and’’; and 
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(iv) by adding at the end the fol-
lowing: 
‘‘(ii) if the Secretary determines that 
a greater amount of support is necessary 
to demonstrate more capital intensive crop-
ping opportunities or in the case of socially 
disadvantaged farmers or ranchers (as de-
fined in section 355(e) of the Consolidated 
Farm and Rural Development Act (7 
U.S.C. 2003(e))), up to 65 percent of the 
costs of establishing an eligible perennial 
crop covered by the contract (as deter-
mined under clause (i)); and 
‘‘(iii) determined by the Secretary in a 
manner that seeks to minimize Federal 
costs, recognizing that the Secretary is not 
obligated to provide maximum cost-share 
allowances under this section.’’; 
(B) in subparagraph (C)(ii), in the clause 
heading, by inserting ‘‘IN ANNUAL PAYMENTS 
UNDER CONTRACT’’ after ‘‘REDUCTION’’; and 
(C) by adding at the end the following: 
‘‘(D) REQUIREMENTS.—Subject to sub-
paragraphs (B) and (C), the Secretary shall 
award payments under this subsection on a 
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competitive basis, taking into consideration the 
needs— 
‘‘(i) to demonstrate the economic via-
bility of diverse bioenergy crops; and 
‘‘(ii) to encourage cost competition in 
establishment of eligible crops.’’; 
(4) in subsection (d)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘col-
lected directly from the land’’ after ‘‘eligible 
material’’; and 
(B) in paragraph (2), by striking subpara-
graph (B) and inserting the following: 
‘‘(B) AMOUNT.— 
‘‘(i) IN GENERAL.—The amount of a 
matching payment under this subsection 
shall be determined by the Secretary. 
‘‘(ii) 
REQUIREMENTS.—Subject 
to 
subparagraph (C), the Secretary shall 
award payments on a competitive basis, 
taking into consideration the need— 
‘‘(I) to demonstrate the economic 
viability of diverse eligible crops and 
eligible materials that otherwise would 
be uneconomically retrievable for high 
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priority 
uses 
(such 
as 
advanced 
biofuels and biobased products); and 
‘‘(II) to encourage cost competi-
tion in the collection, harvest, storage, 
and transportation of eligible crops to 
a biomass conversion facility. 
‘‘(C) MAXIMUM
PAYMENT.—Subject to 
paragraph (3), the Secretary may provide 
matching payments at a maximum rate of 
$0.50 for each $1 per dry ton provided by the 
biomass conversion facility, in an amount equal 
to not more than $35 per ton for a period of 
2 years. 
‘‘(D) MINIMIZATION OF COSTS.—In deter-
mining payment levels under this section, the 
Secretary shall— 
‘‘(i) seek to minimize costs; and 
‘‘(ii) not be required to provide the 
maximum rate of payment allowed under 
this section. 
‘‘(E) PROHIBITION.—Payments may not 
be made under this section for eligible materials 
collected or harvested that, after delivery to a 
biomass conversion facility, the campus of the 
facility, or affiliated facilities, as determined by 
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the Secretary, are required to be separated 
from eligible materials used for a higher-value 
product in order to be used for heat, power, 
biobased products, or advanced biofuels.’’; and 
(5) by striking subsections (e) and (f) and in-
serting the following: 
‘‘(e) FUNDING.— 
‘‘(1) MANDATORY FUNDING.— 
‘‘(A) IN GENERAL.—Of the funds of the 
Commodity Credit Corporation, the Secretary 
shall use to carry out this section $55,000,000 
for each of the fiscal years 2013 through 2017, 
to remain available until expended. 
‘‘(B) BCAP PROJECT AREA.—Of the funds 
made available for each fiscal year under sub-
paragraph (A), not less than 50 percent shall 
be made available to carry out subsection (c). 
‘‘(2) DISCRETIONARY FUNDING.—In addition to 
any other funds made available to carry out this sec-
tion, there is authorized to be appropriated to carry 
out this section $150,000,000 for each of fiscal 
years 2013 through 2017. 
‘‘(3) 
TECHNICAL
ASSISTANCE.—Notwith-
standing paragraph (1)(B), the Secretary may use 
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funds made available for each fiscal year under this 
subsection to provide technical assistance.’’. 
SEC. 4007. RURAL ENERGY SAVINGS PROGRAM. 
Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 9014. RURAL ENERGY SAVINGS PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) any public power district, public util-
ity district, or similar entity, or any electric co-
operative described in section 501(c)(12) or 
1381(a)(2) of the Internal Revenue Code of 
1986, that borrowed and repaid, prepaid, or is 
paying an electric loan made or guaranteed by 
the Rural Utilities Service (or any predecessor 
agency); 
‘‘(B) any entity primarily owned or con-
trolled by 1 or more entities described in sub-
paragraph (A); or 
‘‘(C) any other entity that is an eligible 
borrower of the Rural Utility Service (as deter-
mined under section 1710.101 of title 7, Code 
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of Federal Regulations (or a successor regula-
tion)). 
‘‘(2) ENERGY
EFFICIENCY
MEASURES.—The 
term ‘energy efficiency measures’ means, for or at 
property served by an eligible entity, structural im-
provements and investments in cost-effective, com-
mercial technologies to increase energy efficiency. 
‘‘(3) QUALIFIED CONSUMER.—The term ‘quali-
fied consumer’ means a consumer served by an eligi-
ble entity that has the ability to repay a loan made 
under subsection (c), as determined by the eligible 
entity. 
‘‘(4) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Agriculture, acting through the Ad-
ministrator of the Rural Utilities Service. 
‘‘(b) LOANS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall make loans to eligible entities 
that agree to use the loan funds to make loans to 
qualified consumers for the purpose of implementing 
energy efficiency measures. 
‘‘(2) REQUIREMENTS.— 
‘‘(A) IN GENERAL.—As a condition of re-
ceiving a loan under this subsection, an eligible 
entity shall— 
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‘‘(i) establish a list of energy effi-
ciency measures that is expected to de-
crease energy use or costs of qualified con-
sumers; 
‘‘(ii) prepare an implementation plan 
for use of the loan funds, including for in-
terest rate utilization under subsection 
(c)(1)(A); 
‘‘(iii) provide for appropriate measure-
ment and verification to ensure— 
‘‘(I) the effectiveness of the en-
ergy efficiency loans made by the eli-
gible entity; and 
‘‘(II) that there is no conflict of 
interest in carrying out this section; 
and 
‘‘(iv) demonstrate expertise in effec-
tive use of energy efficiency measures at 
scale. 
‘‘(B) REVISION OF LIST OF ENERGY EFFI-
CIENCY MEASURES.—Subject to the approval of 
the Secretary, an eligible entity may update the 
list required under subparagraph (A)(i) to ac-
count for newly available efficiency technologies. 
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‘‘(C) EXISTING ENERGY EFFICIENCY PRO-
GRAMS.—An eligible entity that, at any time be-
fore the date that is 60 days after the date of 
enactment of this section, has established an 
energy efficiency program for qualified con-
sumers may use an existing list of energy effi-
ciency measures, implementation plan, or meas-
urement and verification system of that pro-
gram to satisfy the requirements of subpara-
graph (A) if the Secretary determines the list, 
plan, or systems are consistent with the pur-
poses of this section. 
‘‘(3) NO INTEREST.—A loan under this sub-
section shall bear no interest. 
‘‘(4) REPAYMENT.—With respect to a loan 
under paragraph (1)— 
‘‘(A) the term shall not exceed 20 years 
from the date on which the loan is closed; and 
‘‘(B) except as provided in paragraph (6), 
the repayment of each advance shall be amor-
tized for a period not to exceed 10 years. 
‘‘(5) AMOUNT OF ADVANCES.—Any advance of 
loan funds to an eligible entity in any single year 
shall not exceed 50 percent of the approved loan 
amount. 
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‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVI-
TIES.— 
‘‘(A) IN GENERAL.—In order to assist an 
eligible entity in defraying the appropriate 
start-up costs (as determined by the Secretary) 
of establishing new programs or modifying ex-
isting programs to carry out subsection (c), the 
Secretary shall allow an eligible entity to re-
quest a special advance. 
‘‘(B) AMOUNT.—No eligible entity may re-
ceive a special advance under this paragraph 
for an amount that is greater than 4 percent of 
the loan amount received by the eligible entity 
under paragraph (1). 
‘‘(C) REPAYMENT.—Repayment of the spe-
cial advance— 
‘‘(i) shall be required during the 10- 
year period beginning on the date on which 
the special advance is made; and 
‘‘(ii) at the election of the eligible en-
tity, may be deferred to the end of the 10- 
year period. 
‘‘(7) LIMITATION.—All special advances shall be 
made under a loan described in paragraph (1) dur-
ing the first 10 years of the term of the loan. 
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‘‘(c) LOANS TO QUALIFIED CONSUMERS.— 
‘‘(1) TERMS OF LOANS.—Loans made by an eli-
gible entity to qualified consumers using loan funds 
provided by the Secretary under subsection (b)— 
‘‘(A) may bear interest, not to exceed 3 
percent, to be used for purposes that include— 
‘‘(i) to establish a loan loss reserve; 
and 
‘‘(ii) to offset additional personnel and 
program costs of eligible entities to provide 
the loans; 
‘‘(B) shall finance energy efficiency meas-
ures for the purpose of decreasing energy usage 
or costs of the qualified consumer by an 
amount that ensures, to the maximum extent 
practicable, that a loan term of not more than 
10 years will not pose an undue financial bur-
den on the qualified consumer, as determined 
by the eligible entity; 
‘‘(C) shall not be used to fund purchases 
of, or modifications to, personal property, un-
less the personal property is or becomes at-
tached to real property (including a manufac-
tured home) as a fixture; 
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‘‘(D) shall be repaid through charges 
added to the electric bill for the property for, or 
at which, energy efficiency measures are or will 
be implemented, on the condition that this re-
quirement does not prohibit— 
‘‘(i) the voluntary prepayment of a 
loan by the owner of the property; or 
‘‘(ii) the use of any additional repay-
ment mechanisms that are— 
‘‘(I) demonstrated to have appro-
priate risk mitigation features, as de-
termined by the eligible entity; or 
‘‘(II) required if the qualified 
consumer is no longer a customer of 
the eligible entity; and 
‘‘(E) shall require an energy audit by an 
eligible entity to determine the impact of pro-
posed energy efficiency measures on the energy 
costs and consumption of the qualified con-
sumer. 
‘‘(2) CONTRACTORS.—In addition to any other 
qualified general contractor, eligible entities may 
serve as general contractors. 
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‘‘(d) 
CONTRACT
FOR
MEASUREMENT
AND 
VERIFICATION, TRAINING, 
AND
TECHNICAL
ASSIST-
ANCE.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of enactment of this section, the Sec-
retary— 
‘‘(A) shall establish a plan for measure-
ment and verification, training, and technical 
assistance of the program; and 
‘‘(B) may enter into 1 or more contracts 
with a qualified entity for the purposes of— 
‘‘(i) 
providing 
measurement 
and 
verification activities; and 
‘‘(ii) developing a program to provide 
technical assistance and training to the 
employees of eligible entities to carry out 
this section. 
‘‘(2) USE
OF
SUBCONTRACTORS
AUTHOR-
IZED.—A qualified entity that enters into a contract 
under paragraph (1) may use subcontractors to as-
sist the qualified entity in carrying out the contract. 
‘‘(e) FAST START DEMONSTRATION PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary shall offer to 
enter into agreements with eligible entities (or 
groups of eligible entities) that have energy effi-
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ciency programs described in subsection (b)(2)(C) to 
establish an energy efficiency loan demonstration 
projects consistent with the purposes of this section. 
‘‘(2) EVALUATION
CRITERIA.—In determining 
which eligible entities to award loans under this sec-
tion, the Secretary shall take into consideration eligi-
ble entities that— 
‘‘(A) implement approaches to energy au-
dits and investments in energy efficiency meas-
ures that yield measurable and predictable sav-
ings; 
‘‘(B) use measurement and verification 
processes to determine the effectiveness of en-
ergy efficiency loans made by eligible entities; 
‘‘(C) include training for employees of eli-
gible entities, including any contractors of such 
entities, to implement or oversee the activities 
described in subparagraphs (A) and (B); 
‘‘(D) provide for the participation of a ma-
jority of eligible entities in a State; 
‘‘(E) reduce the need for generating capac-
ity; 
‘‘(F) provide efficiency loans to— 
‘‘(i) in the case of a single eligible en-
tity, not fewer than 20,000 consumers; or 
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‘‘(ii) in the case of a group of eligible 
entities, not fewer than 80,000 consumers; 
and 
‘‘(G) serve areas in which, as determined 
by the Secretary, a large percentage of con-
sumers reside— 
‘‘(i) in manufactured homes; or 
‘‘(ii) in housing units that are more 
than 50 years old. 
‘‘(3) DEADLINE
FOR
IMPLEMENTATION.—To 
the maximum extent practicable, the Secretary shall 
enter into agreements described in paragraph (1) by 
not later than 90 days after the date of enactment 
of this section. 
‘‘(4) EFFECT ON AVAILABILITY OF LOANS NA-
TIONALLY.—Nothing in this subsection shall delay 
the availability of loans to eligible entities on a na-
tional basis beginning not later than 180 days after 
the date of enactment of this section. 
‘‘(5) ADDITIONAL
DEMONSTRATION
PROJECT 
AUTHORITY.— 
‘‘(A) IN
GENERAL.—The Secretary may 
conduct demonstration projects in addition to 
the project required by paragraph (1). 
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‘‘(B) INAPPLICABILITY
OF
CERTAIN
CRI-
TERIA.—The additional demonstration projects 
may be carried out without regard to subpara-
graphs (D), (F), or (G) of paragraph (2). 
‘‘(f) ADDITIONAL AUTHORITY.—The authority pro-
vided in this section is in addition to any other authority 
of the Secretary to offer loans under any other law. 
‘‘(g) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $70,000,000 for 
each of fiscal years 2013 through 2017. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to 
any other funds made available to carry out this sec-
tion, there is authorized to be appropriated to the 
Secretary to carry out this section $80,000,000 for 
each of fiscal years 2013 through 2017, to remain 
available until expended. 
‘‘(h) EFFECTIVE PERIOD.—Subject to the availability 
of funds under subsection (g) and except as otherwise pro-
vided in this section, the loans and other expenditures re-
quired to be made under this section shall be available 
until expended, with the Secretary authorized to make new 
loans as loans are repaid. 
‘‘(i) REGULATIONS.— 
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‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, not later than 180 days 
after the date of enactment of this section, the Sec-
retary shall promulgate such regulations as are nec-
essary to implement this section. 
‘‘(2) PROCEDURE.—The promulgation of the 
regulations and administration of this section shall 
be made without regard to— 
‘‘(A) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of 
proposed rulemaking and public participation in 
rulemaking; and 
‘‘(B) chapter 35 of title 44, United States 
Code (commonly known as the ‘Paperwork Re-
duction Act’). 
‘‘(3) CONGRESSIONAL
REVIEW
OF
AGENCY 
RULEMAKING.—In carrying out this section, the Sec-
retary shall use the authority provided under section 
808 of title 5, United States Code. 
‘‘(4) INTERIM REGULATIONS.—Notwithstanding 
paragraphs (1) and (2), to the extent regulations are 
necessary to carry out any provision of this section, 
the Secretary shall implement such regulations 
through the promulgation of an interim rule.’’. 
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TITLE V—TECHNICAL 
IMPROVEMENTS TO RESEARCH 
SEC. 
5001. 
MATCHING 
FUND 
REQUIREMENT 
UNDER 
MCINTIRE-STENNIS COOPERATIVE FORESTRY 
ACT. 
(a) 1890 WAIVERS.—Section 4 of Public Law 87– 
788 (commonly known as the ‘‘McIntire-Stennis Coopera-
tive Forestry Act’’) (16 U.S.C. 582a–3) is amended— 
(1) by designating the first sentence and the 
second through fifth sentences as subsection (a) and 
subsections (c) through (f), respectively; and 
(2) by inserting after subsection (a) (as so des-
ignated) the following: 
‘‘(b) 1890 INSTITUTIONS.—The matching funds re-
quirement of this section shall not be applicable to 1890 
Institutions (as defined in section 2 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 
(7 U.S.C. 7601)) if the allocation is below $200,000 for 
a fiscal year.’’. 
(b) PARTICIPATION.—Section 8 of Public Law 87– 
788 (commonly known as the ‘‘McIntire-Stennis Coopera-
tive Forestry Act’’) (16 U.S.C. 582a–7) is amended by 
inserting ‘‘the Federated States of Micronesia, American 
Samoa, the Commonwealth of the Northern Mariana Is-
lands,’’ after ‘‘the Virgin Islands,’’. 
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SEC. 5002. MATCHING FUND REQUIREMENT UNDER HATCH 
ACT OF 1887. 
Section 3(d) of the Hatch Act of 1887 (7 U.S.C. 
361c(d)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod at the following: ‘‘, except that a State may ob-
tain $2 from private sources for each $1 the State 
is required to match under this Act’’; and 
(2) in paragraph (4)(A), by inserting before the 
period at the following: ‘‘, except that an insular 
area or the District of Columbia may obtain $2 from 
private sources for each $1 the insular area or the 
District of Columbia, respectively, is required to 
match under this Act’’. 
SEC. 5003. MATCHING FUND REQUIREMENT UNDER SMITH- 
LEVER ACT. 
Section 3(e) of the Smith-Lever Act (7 U.S.C. 
343(e)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod at the following: ‘‘, except that a State may ob-
tain $2 from private sources for each $1 the State 
is required to match under this Act’’; and 
(2) in paragraph (4)(A), by inserting before the 
period at the following: ‘‘, except that an insular 
area or the District of Columbia may obtain $2 from 
private sources for each $1 the insular area or the 
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District of Columbia, respectively, is required to 
match under this Act’’. 
SEC. 5004. BIOMASS RESEARCH AND DEVELOPMENT INITIA-
TIVE. 
(a) MOVEMENT OF INITIATIVE.—Section 9008 of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8108) is— 
(1) redesignated as section 1473H of the Na-
tional Agricultural Research, Extension, and Teach-
ing Policy Act of 1977; and 
(2) moved so as to appear at the end of subtitle 
K of that Act (7 U.S.C. 3310 et seq.). 
(b) REAUTHORIZATION AND IMPROVEMENT OF INI-
TIATIVE.—Section 1473H of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (as 
redesignated and moved by subsection (a)) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (1), (2), 
and (3) as paragraphs (2), (6), and (7), respec-
tively; 
(B) by inserting before paragraph (2) (as 
so redesignated) the following: 
‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi-
sory Committee’ means the Biomass Research and 
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Development Technical Advisory Committee estab-
lished by subsection (d)(1).’’; 
(C) by inserting after paragraph (2) (as so 
redesignated) the following: 
‘‘(3) BIOFUEL.—The term ‘biofuel’ means a 
fuel derived from renewable biomass. 
‘‘(4) BIOREFINERY.—The term ‘biorefinery’ 
means a facility (including equipment and processes) 
that— 
‘‘(A) converts renewable biomass into 
biofuels and biobased products; and 
‘‘(B) may produce electricity. 
‘‘(5) BOARD.—The term ‘Board’ means the 
Biomass Research and Development Board estab-
lished by subsection (c).’’; and 
(D) by adding at the end the following: 
‘‘(8) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 102(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(a)). 
‘‘(9) RENEWABLE BIOMASS.—The term ‘renew-
able biomass’ has the meaning given the term in sec-
tion 9001 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8101).’’; 
(2) in subsection (e)— 
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(A) in paragraph (3)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘the Administrator 
of the Environmental Protection Agency 
and’’; and 
(ii) by subparagraph (B)(i), by strik-
ing ‘‘cellulosic’’; and 
(B) in paragraph (4)(C), by striking ‘‘cel-
lulosic’’; 
(3) in subsection (g), in the matter preceding 
paragraph (1), by striking ‘‘For each fiscal year for 
which funds are made available to carry out this sec-
tion’’ and inserting ‘‘Every 2 years’’; and 
(4) in subsection (h)— 
(A) in paragraph (1), by striking ‘‘ex-
pended—’’ and all that follows through the pe-
riod at the end and inserting ‘‘expended, 
$60,000,000 for each of fiscal years 2013 
through 2017.’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$35,000,000 for each of fiscal years 2009 
through 2012’’ and inserting ‘‘$115,000,000 
for each of fiscal years 2013 through 2017’’. 
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(c) CONFORMING AMENDMENTS.—Section 9001 of 
the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101) is amended— 
(1) by striking paragraphs (2) and (8); 
(2) by redesignating paragraphs (3) through 
(7) as paragraphs (2) through (6), respectively; and 
(3) by redesignating paragraphs (9) through 
(14) as paragraphs (7) through (12), respectively. 
Æ 
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