I 
110TH CONGRESS 
1ST SESSION H. R. 2144 
To extend and enhance farm, nutrition, and community development programs 
of the Department of Agriculture, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2007 
Ms. DELAURO (for herself, Mr. GILCHREST, Mr. MURPHY of Connecticut, Ms. 
WOOLSEY, Mr. ROTHMAN, Mr. GERLACH, Mr. RUPPERSBERGER, Mr. 
SHAYS, Mr. ALLEN, Mr. HINCHEY, Mr. COURTNEY, Ms. KAPTUR, Mr. 
LARSON of Connecticut, Ms. SCHAKOWSKY, Mr. HODES, Mr. CASTLE, 
Mr. ARCURI, Mr. FARR, Mr. WELCH of Vermont, Mr. MCHUGH, Mr. 
REYNOLDS, Ms. SHEA-PORTER, and Mr. OLVER) introduced the following 
bill; which was referred to the Committee on Agriculture, and in addition 
to the Committees on Energy and Commerce, Education and Labor, and 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To extend and enhance farm, nutrition, and community de-
velopment programs of the Department of Agriculture, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Farm, Nutrition, and Community Investment Act of 
2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—MARKET AND ECONOMIC DEVELOPMENT 
Subtitle A—Farm and Ranch Profitability Grant Program 
Sec. 101. Availability and purpose of grants. 
Sec. 102. Allocations to States. 
Sec. 103. Grant expenditures and allowable uses. 
Sec. 104. State eligibility and accountability. 
Sec. 105. Funding. 
Sec. 106. Definitions. 
Subtitle B—Miscellaneous Provisions 
Sec. 111. Eligibility of certain agricultural producers for certain rural develop-
ment programs. 
Sec. 112. Technical assistance for specialty crops. 
Sec. 113. Market access program. 
TITLE II—CONSERVATION 
Subtitle A—Changes to Existing Conservation Programs 
Sec. 201. Environmental quality incentives program. 
Sec. 202. Delivery of technical assistance. 
Sec. 203. Cooperative conservation partnership initiative. 
Sec. 204. Conservation loan guarantee program. 
Sec. 205. Pilot program for comprehensive conservation planning. 
Sec. 206. Conservation application process. 
Sec. 207. Minimum base allocation to States in funding of certain Department 
of Agriculture conservation programs. 
Sec. 208. Conservation security program. 
Sec. 209. Reauthorization of and increased funding for farmland protection 
program. 
Sec. 210. Farmland Protection Policy Act. 
Sec. 211. Debt for agricultural easements. 
Sec. 212. Planning for agriculture grants. 
Sec. 213. Exclusion of payments under Department of Agriculture conservation 
programs from adjusted gross income limitation. 
Sec. 214. Reauthorization of and increased funding for wildlife habitat incentive 
program. 
Sec. 215. Conservation reserve program. 
Sec. 216. Wetlands reserve program. 
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Sec. 217. Pilot program for conservation risk management. 
Subtitle B—Conservation Corridor Demonstration Program 
Sec. 221. Conservation corridor demonstration program. 
Sec. 222. Implementation of conservation corridor plan. 
Sec. 223. Funding requirements. 
Sec. 224. Relation to existing program. 
TITLE III—ENERGY 
Sec. 301. Definition of biomass. 
Sec. 302. Research on biobased products. 
Sec. 303. Development of biorefineries. 
Sec. 304. Energy audit and renewable energy development program. 
Sec. 305. Renewable energy systems and energy efficiency improvements pro-
gram. 
Sec. 306. Biomass research and development. 
Sec. 307. Cooperative research and extension projects for carbon cycle, renew-
able energy, and climate change in the Northeast and Mid-At-
lantic United States. 
Sec. 308. Industrial site redevelopment through cellulosic program. 
Sec. 309. Farm and ranch energy efficiency rebate program. 
Sec. 310. Alternative uses for biofuel byproducts. 
Sec. 311. National net metering for farm energy. 
TITLE IV—HEALTHY DIETS 
Sec. 401. Expansion of fresh fruit and vegetable program. 
Sec. 402. Section 32 specialty crop purchases. 
Sec. 403. School preference study. 
Sec. 404. Independent evaluation of Department of Agriculture commodity pur-
chase process. 
Sec. 405. Allow geographic preferences in food purchasing programs. 
Sec. 406. Authorization level for farm-to-cafeteria activities. 
Sec. 407. Extension of WIC farmer’s market nutrition program. 
Sec. 408. Senior farmers’ market nutrition program. 
Sec. 409. Disabled farmers market nutrition pilot program. 
Sec. 410. Farmers’ market promotion program. 
Sec. 411. Department of Defense and Department of Agriculture procurement 
of locally produced fruits and vegetables. 
TITLE V—FORESTRY 
Sec. 501. National and State forest prioritization and planning. 
Sec. 502. Healthy forests reserve program. 
Sec. 503. Community forest and open space conservation program. 
TITLE VI—NUTRITION 
Subtitle A—Food Stamp Program 
Sec. 601. Preventing reductions in benefits. 
Sec. 602. Strengthening the food purchasing power of low-income americans. 
Sec. 603. Child care deduction. 
Sec. 604. Exclusion of combat-related military pay from countable income. 
Sec. 605. Exclusion of retirement accounts from countable financial resources. 
Sec. 606. Allowable countable resources. 
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Sec. 607. Facilitating simplified reporting. 
Sec. 608. Simplifying work requirement. 
Sec. 609. Minimum benefit. 
Sec. 610. Reauthorization of food stamp program and food distribution pro-
gram on Indian reservations. 
Sec. 611. Accountability for paperwork requirements. 
Sec. 612. Performance standards for biometric technology. 
Sec. 613. Preventing conflicts of interest. 
Sec. 614. Limitation on contracting. 
Sec. 615. Fairness for legal immigrants. 
Sec. 616. Clarifying eligibility. 
Sec. 617. Ensuring proper screening. 
Sec. 618. Clarification of simplified administrative reporting requirement. 
Subtitle B—Other Nutrition Programs 
Sec. 631. Commodities for the emergency food assistance program. 
Sec. 632. Reauthorize the commodity supplemental food program (CSFP). 
Sec. 633. Reauthorization of and increased funding for community food project 
competitive grants. 
TITLE VII—CROP INSURANCE 
Sec. 701. Reauthorization of and additional funding for agricultural manage-
ment assistance program. 
Sec. 702. Reauthorization, expansion, and improvement of adjusted gross rev-
enue (AGR) insurance pilot program. 
Sec. 703. Crop insurance incentives for beginning farmers. 
Sec. 704. Crop insurance appeals. 
Sec. 705. Expanded coverage based on historical data. 
Sec. 706. Coverage area flexibility. 
Sec. 707. Provision of organic insurance programs. 
Sec. 708. Education and risk management assistance. 
TITLE VIII—DAIRY 
Sec. 801. Continuation of the milk income loss contract program. 
Sec. 802. Minimum price for Class I milk under Federal milk marketing orders. 
Sec. 803. Dairy export incentive and dairy indemnity programs. 
Sec. 804. Funding of dairy promotion and research program. 
Sec. 805. Federal milk marketing orders. 
Sec. 806. Dairy processing equipment loan guarantee fund. 
Sec. 807. Federal loan forgiveness program. 
Sec. 808. Mandatory reporting of dairy commodities. 
TITLE IX—MISCELLANEOUS PROVISIONS 
Sec. 901. National organic transition and stewardship incentive program. 
Sec. 902. National organic technical committee. 
Sec. 903. National organic certification cost share program. 
Sec. 904. Exclusion of 100 percent of gain on sales of development rights or 
conservation easments on agricultural land to eligible entities 
for conservation purposes. 
Sec. 905. Establishment of research grants program for producers to improve 
survivability of speciality crops and livestock. 
Sec. 906. National clean plant network. 
Sec. 907. Early pest detection and surveillance improvement program. 
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TITLE I—MARKET AND 
ECONOMIC DEVELOPMENT 
Subtitle A—Farm and Ranch 
Profitability Grant Program 
SEC. 101. AVAILABILITY AND PURPOSE OF GRANTS. 
(a) IN GENERAL.—For each of fiscal years 2008 
through 2013, the Secretary shall make a grant under this 
section to each State, through its State Department of Ag-
riculture, that has an approved 3-year strategic plan and 
has submitted an annual work plan and annual report in 
accordance with the terms and conditions established 
under section (4). 
(b) PURPOSE OF GRANTS.—The objective of these 
grants is to improve the profitability of America’s farms 
and ranches, increase self-employment opportunities for 
farmers and ranchers, revitalize local and regional food 
systems, increase wealth and asset-building in rural com-
munities; and encourage entrepreneurship and innovation 
in farming and ranching by funding State, local and farm- 
level programs and projects that address— 
(1) farm viability and diversification; 
(2) market development and promotion; 
(3) product development/differentiation and 
promotion; 
(4) consumer education; 
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(5) business planning; 
(6) alternate ownership models and structures; 
(7) local and regional infrastructure needs; or 
(8) local and regional food security needs. 
(c) MAINTENANCE
OF EFFORT.—The State shall 
provide assurances to the Secretary, as part of its annual 
accounting required under section 104, that funds pro-
vided to the State under this section have been used only 
to supplement, not to supplant, the amount of State funds 
otherwise expended in support of the permitted grant uses. 
(d) ADMINISTRATIVE AND PLANNING EXPENSES.— 
Not more than 5 percent of funds provided annually under 
this section may be used by the State for administrative 
and planning expenses. 
SEC. 102. ALLOCATIONS TO STATES. 
(a) Fifteen percent of any funding allocated annually 
under this subtitle shall be allocated equally among States 
as a minimum base grant amount. Subject to the appro-
priation of sufficient funds, each eligible State shall re-
ceive at least $3,000,000 each fiscal year as a minimum 
grant amount under this section. 
(b) Beginning in fiscal year 2009, and for each fiscal 
year thereafter, 15 percent of the amount of the funds 
allocated under this subtitle shall be distributed to States 
as bonus payments. Bonus payments shall be awarded 
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equally among those States that match at least 30 percent 
of the prior year’s Federal allocation under this subtitle 
with an equivalent amount of State, local or private funds, 
or combination thereof. 
(c) All remaining funds allocated to States under this 
subtitle shall bear the same ration to the total amount 
made available under this section for that fiscal year as 
a composite index, weighted equally, of the market value 
of agricultural sales and the number of farms in the State 
during the preceding calendar year bears to the composite, 
weighted equally, of the market value of agricultural sales 
and the number of farms in all States receiving grants 
under this section in the fiscal year. 
SEC. 103. GRANT EXPENDITURES AND ALLOWABLE USES. 
(a) ELIGIBLE GRANT RECIPIENTS.—To achieve the 
objectives of these grants, a State department of agri-
culture may use grant funds provided under this title to 
supplement funding for State programs, projects and ini-
tiatives, and/or to provide grants to any of the following: 
(1) Producers. 
(2) Local and regional government entities. 
(3) Agricultural cooperatives. 
(4) Agricultural processors. 
(5) Non-profit organizations. 
(6) Research institutions. 
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(b) PERMITTED USE OF GRANT FUNDS.—A State 
may use grant funds received under this section for any 
of the following purposes: 
(1) To provide marketing or business develop-
ment assistance to producers. 
(2) To promote product development or dif-
ferentiation. 
(3) To encourage direct-to-consumer market op-
portunities such as— 
(A) farmers markets; 
(B) buy-local campaigns; 
(C) agri-tourism; and 
(D) on-farm retail market opportunities. 
(4) To rebuild local and regional food systems 
through planning or development of agricultural 
processing facilities or other infrastructure that en-
hances or adds value to agricultural products grown 
within the State. 
(5) To match State funding for— 
(A) farm viability programs; 
(B) agriculture innovation centers; and 
(C) recreational walk-in or access pro-
grams. 
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(6) To encourage profitable business models 
and develop alternative ownership structures and 
new business succession models. 
(7) To increase consumer awareness of agricul-
tural products and services grown and provided 
within the State, including advertising and pro-
motional campaigns. 
(8) To provide direct grants to producers for 
farm infrastructure or equipment needs that— 
(A) add value to a commodity produced; or 
(B) will allow for the transition to a new 
agricultural enterprise. 
(9) To provide technical, legal and other sup-
port to beginning and/or socially disadvantaged 
farmers. 
(10) To assist county and local governments in 
planning for agriculture, including the land use and 
infrastructure needs of local producers. 
(11) To address food safety issues, including 
training. 
(12) To enhance the competitiveness of spe-
cialty crops, including applied research. 
(c) PROHIBITED USE OF GRANTS FUNDS.—A State 
may not use grant funds received under this section to 
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directly subsidize the price of an agricultural commodity 
in the market. 
(d) MAXIMUM GRANT AMOUNT.—A State may not 
award more than 33 percent of the funds it receives under 
this section in any fiscal year to any single project, pro-
posal or program. 
SEC. 104. STATE ELIGIBILITY AND ACCOUNTABILITY. 
(a) IN GENERAL.—To be eligible to receive a grant 
a State must have a 3-year strategic plan reviewed by that 
State’s Federal Food and Agricultural Council and ap-
proved by the Secretary of Agriculture. Strategic plans 
shall be prepared and submitted in the first and fourth 
fiscal years in which funds are available under this section. 
A strategic plan shall include the information required in 
subsection (b) as well as any other information the Sec-
retary may require by regulation. Within 90 days after 
the end of each fiscal year in which a State is allocated 
grant funds under this subtitle, a State shall submit a re-
port of the previous fiscal year’s activities. The report 
shall include the information required in subsection (c) as 
well as any other information the Secretary may require 
by regulation. 
(b) STRATEGIC PLAN.—A strategic plan shall reflect 
the diversity of the State’s agricultural sector, including 
the production, processing, marketing, and distribution of 
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its food and agricultural products, and must include the 
following: 
(1) The State’s vision for meeting the purposes 
of the title. 
(2) The State’s 3-year plan for achieving that 
vision, including goals, objectives, measurable out-
comes and yearly milestones toward completion. 
(3) An explanation of how the plan reflects the 
diversity of the State’s agricultural sector, and the 
method by which the State has and will continue to 
solicit the input of the agricultural sector in devel-
oping the plan, setting grant priorities and selecting 
projects. 
(4) A year-by-year work plan, including— 
(A) general project areas that will be fund-
ed; 
(B) percent of funding anticipated for each 
project area; and 
(C) the expected project selection process 
for each fiscal year. 
(c) ANNUAL REPORTS.—Within 90 days after the 
end of every fiscal year, a State shall submit a report of 
the previous fiscal year’s activities, including an account-
ing of projects funded, non-Federal funds leveraged, mile-
posts completed, outcomes achieved, and unobligated 
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funds remaining. The annual report shall also include an 
updated work plan for the current fiscal year. 
(d) REVIEW OF STRATEGIC PLANS AND ANNUAL RE-
PORTS.—In reviewing the strategic plan submitted under 
subsection (b), the State’s Federal Food and Agricultural 
Council shall ensure that the plan reflects the diversity 
of the State’s agricultural sector and will carry out the 
purposes of the grant program. The Council shall submit 
the plan and its recommendation to the Secretary regard-
ing the plan within 45 days of receipt of the plan. The 
Secretary may request that a State make changes to its 
strategic plan or may reject a State’s strategic plan, but 
must give a State an opportunity to resubmit a revised 
plan. The State’s Food and Agricultural Council shall also 
review the annual report required under subsection (c), 
and shall forward the report and the Council’s rec-
ommendations, if any, regarding the State’s annual work 
plan to the Secretary within 45 days of receipt of the re-
port. The Secretary may request that a State make 
changes to its annual work plan in order to more fully 
reflect the priorities of the State’s strategic plan or the 
goals of the program. 
(e) UNOBLIGATED FUNDS.—Any funds not obligated 
by a State within 2 fiscal years shall be remitted back 
to the Secretary for redistribution in the next fiscal year. 
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(f) EFFECT OF NONCOMPLIANCE.—If the Secretary, 
after reasonable notice to a State, finds that there has 
been a failure by the State to comply with the require-
ments under section 101(c) or section 104(b) or (c), is 
not substantially meeting the outcomes and milestones de-
scribed in its strategic and yearly work plans, is not meet-
ing the purposes of the grant program or is not funding 
projects reflective of the diversity of the State’s agricul-
tural sector, the Secretary may disqualify, for 1 or more 
years, the State from receipt of future grants under this 
title. 
(g) AUDIT REQUIREMENTS.—The State shall submit 
an annual audit to the Secretary, through the Agricultural 
Marketing Service. A State may use no more than 2 per-
cent of the total funds awarded to it under this section 
to perform this audit. 
SEC. 105. FUNDING. 
The Secretary shall use $1,000,000,000 of funds of 
the Commodity Credit Corporation during each of fiscal 
years 2008 through 2013 to carry out the purposes of this 
subtitle. 
SEC. 106. DEFINITIONS. 
In this title: 
(1) The term ‘‘State’’ means the 50 States. 
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(2) The term ‘‘State department of agriculture’’ 
means the agency, commission, or department of a 
State government responsible for agriculture within 
the State; 
(3) The term ‘‘producer’’ has the meaning given 
such term by the Department of Agriculture for the 
purpose of the Census of Agriculture. 
Subtitle B—Miscellaneous 
Provisions 
SEC. 111. ELIGIBILITY OF CERTAIN AGRICULTURAL PRO-
DUCERS FOR CERTAIN RURAL DEVELOP-
MENT PROGRAMS. 
An agricultural producer or entity that is substan-
tially owned and operated by agricultural producers shall 
not be required to be located in, or pursuing a project in 
a rural area for purposes of eligibility for programs admin-
istered under the following provisions of law: 
(1) Section 313 and title V of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c and 950aa et 
seq.). 
(2) Subtitle G of title XVI of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5901 et seq.). 
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(3) Sections 306(a)(1) and 310B of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 1926(a)(1) and 1932). 
(4) Section 1323 of the Food Security Act of 
1985 (Public Law 99–198; 7 U.S.C. 1932 note). 
(5) The Act of July 2, 1926 (44 Stat. 802, 
chapter 725; 7 U.S.C. 451 et seq.). 
(6) Any other provision of law under which a 
program is administered by the Rural Business and 
Cooperative Development Service. 
SEC. 112. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 
(a) FUNDING AND CARRYOVER OF FUNDING.—Sub-
section (d) of section 3205 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 5680) is amended 
to read as follows: 
‘‘(d) FUNDING AND CARRYOVER OF FUNDING.— 
‘‘(1) FUNDING.—To carry out the program, the 
Secretary shall make available funds of the Com-
modity Credit Corporation, or an equal value of 
commodities owned by the Commodity credit Cor-
poration, in the amount of— 
‘‘(A) $4,000,000 for fiscal year 2008; 
‘‘(B) $6,000,000 for fiscal year 2009; 
‘‘(C) $8,000,000 for fiscal year 2010; and 
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‘‘(D) $10,000,000 for each of fiscal years 
2011, 2012, and 2013. 
‘‘(2) CARRYOVER OF FUNDING.—Funds made 
available for the program under paragraph (1) or 
under section 201 of the Specialty Crops Competi-
tiveness Act of 2004 (Public Law 108–465; 118 
Stat. 3884) shall remain available until expended.’’. 
(b) FLEXIBILITY.—Such section is further amended 
by adding at the end the following new subsection: 
‘‘(e) FLEXIBILITY.—In providing technical assistance 
under the program, the Secretary shall provide for case- 
by-case extensions, upon the approval of the Administrator 
of the Foreign Agricultural Service, of time frames pro-
vided by regulations in connection with that assistance.’’. 
SEC. 113. MARKET ACCESS PROGRAM. 
Section 211(c)(1)(A) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended— 
(1) by striking ‘‘and’’ before ‘‘$200,000,000’’; 
and 
(2) by inserting ‘‘and $350,000,000 for each of 
the fiscal years 2008 through 2013,’’ after ‘‘2007,’’. 
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TITLE II—CONSERVATION 
Subtitle A—Changes to Existing 
Conservation Programs 
SEC. 201. 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, $2,000,000,000 in each of fiscal 
years 2008 through 2013.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
1240B of such Act is amended (16 U.S.C. 3839aa– 
2)— 
(A) in subsection (a)(1), by striking 
‘‘2010’’ and inserting ‘‘2013’’; and 
(B) in subsection (g), by striking ‘‘2007’’ 
and inserting ‘‘2013’’. 
(b) PURPOSES.—Section 1240 of such Act (16 U.S.C. 
3839aa) is amended— 
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(1) in paragraph (2), by inserting ‘‘, conserving 
energy,’’ after ‘‘resources’’; and 
(2) in paragraph (3), by inserting ‘‘and con-
serve energy,’’ after ‘‘wildlife’’. 
(c) BIDDING
DOWN.—Subsection (c) of section 
1240B of such Act (16 U.S.C. 3839aa–2) is amended to 
read as follows: 
‘‘(c) BIDDING DOWN.—The Secretary shall not as-
sign a higher priority to any application because the appli-
cant is willing to accept a lower cost-share or incentive 
payment than the applicant would otherwise be entitled 
to receive. Nothing in this subsection shall be construed 
to relieve the Secretary of the obligation, when evaluating 
applications for cost-share payments and incentive pay-
ments, to evaluate the cost-effectiveness of the proposed 
conservation practices, systems, and approaches described 
in the applications and to prioritize the most cost-effective 
applications, as required by section 1240C(1).’’. 
(d) EVALUATION
OF
APPLICATIONS
FOR
COST 
SHARE PAYMENTS AND INCENTIVE PAYMENTS.—Section 
1240C of such Act (16 U.S.C. 3839aa–3) is amended to 
read as follows: 
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‘‘SEC. 
1240C. 
EVALUATION 
OF 
APPLICATIONS 
FOR 
COSTSHARE PAYMENTS AND INCENTIVE PAY-
MENTS. 
‘‘In evaluating applications for cost-share payments 
and incentive payments, the Secretary shall— 
‘‘(1) 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 achieving the 
anticipated and desired environmental benefits of the 
project; 
‘‘(2) prioritize applications based on how effec-
tively and comprehensively the project addresses the 
designated resource concern or resource concerns; 
‘‘(3) reward higher levels of environmental per-
formance, such as advanced levels of management 
within land management practices; 
‘‘(4) develop criteria for evaluating applications 
that will ensure that national, State, and local con-
servation priorities are effectively addressed; and 
‘‘(5) prioritize applications that will improve en-
vironmental performance or resource conservation on 
existing agricultural operations.’’. 
(e) COST SHARE PAYMENT EXCEPTION.—Subsection 
(d)(2)(A) of section 1240B of such Act (16 U.S.C. 
3839aa–2) is amended to read as follows: 
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‘‘(A) LIMITED RESOURCE AND BEGINNING 
FARMERS.—The Secretary may increase the 
amount provided to a producer under para-
graph (1) to not more than 90 percent if the 
producer is a limited resource or beginning 
farmer or rancher, as determined by the Sec-
retary, but in no event shall the cost share pay-
ment under this paragraph be less than 15 per-
cent more than the payment that the Secretary 
may determine under paragraph (1).’’. 
(f) CONSERVATION INNOVATION GRANTS.—Section 
1240H of such Act (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) by striking the ‘‘; and’’ at the end of 
paragraph (2)(B) and inserting the following 
new subparagraph: 
‘‘(C) methane digester research; and’’. 
(C) by striking ‘‘and’’ at the end of para-
graph (2); 
(D) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
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(E) by adding at the end the following new 
paragraph: 
‘‘(4) include a plan for technology transfer.’’; 
and 
(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.—In addition to amounts made avail-
able under section 1241(a)(6) to carry out this chapter, 
the Secretary shall use funds of the Commodity Credit 
Corporation to carry out this section in the following 
amounts: 
‘‘(1) 40,000,000 for fiscal year 2008. 
‘‘(2) 50,000,000 for fiscal year 2009. 
‘‘(3) 60,000,000 for fiscal year 2010. 
‘‘(4) 75,000,000 for each of fiscal years 2011 
through 2013.’’. 
(g) 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 section: 
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