3838N) is amended by adding at the end the following 
new subsection: 
‘‘(d) ENROLLMENT
OF CONSERVATION RESERVE 
PROGRAM LAND.— 
‘‘(1) ENROLLMENT
AUTHORIZED.—Subject to 
the eligibility requirements of subsection (c) and all 
other requirements of this subchapter, land enrolled 
in the conservation reserve program may be enrolled 
in the grassland reserve program if the Secretary de-
termines that the land is of high ecological value and 
under significant threat of conversion to other uses. 
‘‘(2) MAXIMUM ENROLLMENT.—The enrollment 
of conservation reserve program land under this sub-
section shall not exceed 50 percent of the total num-
ber of acres enrolled in the grassland reserve pro-
gram in a given fiscal year. 
‘‘(3) PROHIBITION ON DUPLICATION OF PAY-
MENTS.—Land enrolled in the grassland reserve pro-
gram under this subsection shall no longer be eligi-
ble for payments under the conservation reserve pro-
gram.’’. 
(d) EQUITY FOR PASTURE-BASED OPERATIONS.— 
Section 1238N of such Act (16 U.S.C. 3838N) is further 
amended by inserting after subsection (d), as added by 
subsection (c), the following new subsection: 
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‘‘(e) EQUITY FOR PASTURE-BASED OPERATIONS.— 
Consistent with the other requirements of the program, 
the Secretary shall implement the program in a manner 
that ensures that, to the greatest extent practicable, land-
owners operating pasture-based systems have an equal op-
portunity to enroll in the program.’’. 
(e) BIODIVERSITY.—Section 1238O of such Act (16 
U.S.C. 3838o) is amended— 
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by adding at the end the following new sub-
section: 
‘‘(f) BIODIVERSITY.—In emphasizing support for bio-
diversity consistent with the requirements of subsection 
(c), the Secretary shall give priority to agreements and 
easements that protect and restore habitat for rare, 
threatened, endangered, and candidate species or further 
the goals and objectives of the State’s comprehensive wild-
life conservation strategy.’’. 
(f) SPECIAL GRASSLANDS RESERVE ENHANCEMENT 
PROGRAM.—Section 1238P of such Act (16 U.S.C. 
3838p) is amended by adding at the end the following new 
subsection: 
‘‘(e) SPECIAL GRASSLANDS RESERVE ENHANCE-
MENT AGREEMENTS.— 
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‘‘(1) AGREEMENTS.—The Secretary may enter 
into a special grasslands reserve enhancement agree-
ment with a State under which the Secretary will 
make payments to the State or political subdivisions 
or agencies of the State to advance the purposes of 
the grassland reserve program in the State. 
‘‘(2) PAYMENT LIMITATIONS.—Section 1305(d) 
of the Omnibus Budget Reconciliation Act of 1987 
(7 U.S.C. 1308 note; Public Law 100–203) shall not 
apply to payments received by a State or political 
subdivision or agency thereof in connection with an 
agreement entered into under subsection (a).’’. 
SEC. 505. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
(a) EXTENSION.— 
(1) FUNDING
EXTENSION
AND
INCREASE.— 
Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended by striking para-
graph (6) and inserting the following new para-
graph: 
‘‘(6) The environmental quality incentives pro-
gram under chapter 4, using, to the maximum ex-
tent practicable— 
‘‘(A) $1,400,000,000 in fiscal year 2008; 
‘‘(B) $1,600,000,000 in fiscal year 2009; 
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‘‘(C) $1,800,000,000 in each of fiscal 
years 2010 and 2011; and 
‘‘(D) $2,000,000,000 in fiscal year 2012.’’. 
(2) CONFORMING AMENDMENTS.—Chapter 4 of 
subtitle D of title XII of such Act is amended— 
(A) in section 1240B(a)(1) (16 U.S.C. 
3839aa–2(a)(1)), by striking ‘‘2007’’ and in-
serting ‘‘2012’’; and 
(B) in subsection 1240G (16 U.S.C. 
3839aa–7), by striking ‘‘2007’’ and inserting 
‘‘2012’’. 
(b) DEMONSTRATION OF STRUCTURAL AND LAND 
MANAGEMENT PRACTICES.— 
(1) ELIGIBILITY.—Section 1240B(a)(2) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa– 
(a)(2)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(B) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) a producer that demonstrates a struc-
tural or land management practice, including 
project monitoring, measurement, outreach, or 
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education shall be eligible to receive cost-share 
or incentive payments.’’. 
(2) CONFORMING AMENDMENTS.—(A) Section 
1240(3) of such Act (16 U.S.C. 3839aa(3)) is 
amended by striking ‘‘and maintain’’ and inserting 
‘‘, maintain, and demonstrate’’. 
(B) Section 1240F(1) of such Act (16 U.S.C. 
3839aa–6(1)) is amended by striking ‘‘and imple-
menting’’ and inserting ‘‘, implementing, or dem-
onstrating’’. 
(c) PREDATOR DETERRENCE.—Section 1240B(a) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa–(a)) 
is amended by adding at the end the following paragraph: 
‘‘(3) PREDATOR
DETERRENCE.—A producer 
that implements practices or other measures as part 
of a system of proactive predator deterrence for 
large carnivores, including the use of range riders, 
removal of carcasses, and installation of electric 
fencing around calving areas, shall be eligible to re-
ceive cost-share or incentive payments under this 
chapter.’’. 
(d) BIDDING DOWN.—Section 1240B(c) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa–2(c)) is amended 
by inserting before the period at the end the following: 
‘‘, except that this prohibition does not relieve the Sec-
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retary of the obligation to ensure that cost-effectiveness 
is prioritized in the evaluation of offers and payments, as 
provided by section 1240C(1)’’. 
(e) INCENTIVE PAYMENT RATES.—Section 1240B(e) 
of the Food Security Act of 1985 (16 U.S.C. 3839aa– 
2(e)(2)) is amended— 
(1) in paragraph (1), by adding at the end the 
following new sentence: ‘‘The Secretary shall estab-
lish different rates to accommodate variation in the 
cost of practices and product value.’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) RATES FOR COMPONENT PRACTICES.—The 
Secretary shall develop additional incentive payment 
rates for components of a practice that promotes 
residue, nutrient, pest, invasive species, or air qual-
ity management. The amount and rate of incentive 
payments for a component practice shall be scaled 
according to the anticipated level of impact of that 
practice on the priority resource concerns, such that 
more advanced management practices that yield 
greater environmental benefit will receive higher 
payments.’’. 
(f) ALLOCATION OF FUNDING.—Section 1240B(g) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 
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is amended by adding at the end the following new sen-
tence: ‘‘When making initial allocations of funds to States 
to make cost-share and incentive payments under this 
chapter, the Secretary shall consider to what degree pro-
ducers in each State are under pressure to comply with 
existing local, State, or Federal environmental regulations, 
or may have to comply with such regulations in the fu-
ture.’’. 
(g) EVALUATION
OF
APPLICATIONS
FOR
COST- 
SHARE PAYMENTS AND INCENTIVE PAYMENTS.—Section 
1240C of the Food Security Act of 1985 (16 U.S.C. 
3839aa–3) is amended to read as follows: 
‘‘SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST- 
SHARE 
PAYMENTS 
AND 
INCENTIVE 
PAY-
MENTS. 
‘‘(a) PRIORITIES AND CRITERIA.—In evaluating ap-
plications for cost-share payments and incentive pay-
ments, the Secretary shall— 
‘‘(1) prioritize applications based on how effec-
tively and comprehensively designated resource con-
cerns are addressed; 
‘‘(2) prioritize applications based on their over-
all level of cost-effectiveness to ensure that the con-
servation practices, systems, and approaches pro-
posed are the most efficient means of producing the 
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proposed project’s anticipated environmental bene-
fits; 
‘‘(3) reward higher levels of environmental per-
formance, such as advanced levels of management 
within management practices; and 
‘‘(4) develop criteria for evaluating applications 
that will ensure that national, State, and local con-
servation priorities are effectively addressed. 
‘‘(b) WILDLIFE.—In evaluating applications for cost- 
share payments and incentive payments related to projects 
intended primarily to improve wildlife habitat, the Sec-
retary, in addition to meeting the requirements of sub-
section (a), shall give priority to applications that protect 
and restore habitat for rare, threatened, endangered, and 
candidate species or further the goals and objectives of 
the State comprehensive wildlife conservation strategy.’’. 
(h) SUPPORT FOR PROGRAM PLANS.—Section 1240F 
of the Food Security Act of 1985 (16 U.S.C. 3839aa–6) 
is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
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‘‘(3) developing partnerships with other agen-
cies and contracting with technical assistance pro-
viders to supplement Department expertise and 
staffing capacity as necessary.’’. 
(i) CONSERVATION INNOVATION GRANTS.—Section 
1240H of the Food Security Act of 1985 (16 U.S.C. 
3839aa–8) is amended— 
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; 
(2) in subsection (b)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (A); and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(C) alternative energy projects, such as 
solar and wind power energy systems and con-
version of equipment to run on bio-fuels, to re-
duce greenhouse gas emissions and reliance on 
fossil fuels in farm operations;’’; 
(C) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
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(D) by adding at the end the following new 
paragraph: 
‘‘(4) include a plan for technology transfer.’’; 
(3) by adding at the end the following new sub-
sections: 
‘‘(d) TECHNOLOGY TRANSFER.—To the maximum 
extent practicable, the Secretary shall ensure efficient, ef-
fective transfer of innovative technologies and approaches 
demonstrated through projects that receive funding under 
this section. 
‘‘(e) FUNDING.—Of the amounts made available 
under section 1241(a)(6) to carry out this chapter, the 
Secretary shall use to carry out this section— 
‘‘(1) $40,000,000 for fiscal year 2008; 
‘‘(2) $50,000,000 for fiscal year 2009; 
‘‘(3) $60,000,000 for fiscal year 2010; and 
‘‘(4) $75,000,000 for each of fiscal years 2011 
and 2012.’’. 
(j) FUNDING UNDER GROUND AND SURFACE WATER 
CONSERVATION PROGRAM.—Section 1240I of the Food 
Security Act of 1985 (16 U.S.C. 3839aa–9) is amended 
by striking subsection (c) and inserting the following new 
subsection: 
‘‘(b) 
FUNDING.—The 
Secretary 
shall 
use 
$100,000,000 of the funds of the Commodity Credit Cor-
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poration to carry out this section for each of fiscal years 
2008 through 2012. These funds are in addition to 
amounts made available under section 1241(a)(6) to carry 
out this chapter.’’. 
(k) AIR QUALITY IMPROVEMENT AND PERFORMANCE 
INCENTIVES FOR STATES.—Chapter 4 of subtitle D of 
title XII of such Act is amended by adding at the end 
the following new sections: 
‘‘SEC. 1240J. AIR QUALITY IMPROVEMENT. 
‘‘(a) AVAILABILITY OF COST-SHARE PAYMENTS AND 
INCENTIVE PAYMENTS.—In carrying out this chapter, the 
Secretary shall promote air quality by providing cost-share 
payments and incentive payments to individual producers 
to address air quality concerns associated with agriculture. 
‘‘(b) ELIGIBLE PRACTICES, COST-SHARE.— 
‘‘(1) REDUCTION OF EMISSIONS OF CRITERIA 
POLLUTANTS AND AIRBORNE TOXINS.—In addition 
to practices eligible for cost-share payments under 
this chapter, the Secretary shall provide cost-share 
payments to producers under this section for mobile 
or stationary equipment, including engines, used in 
an agricultural operation that will reduce emissions 
of criteria pollutants and airborne toxins. 
‘‘(2) CONSIDERATIONS.—In evaluating applica-
tions for cost-share assistance for equipment de-
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