the end the following new sentence: ‘‘The Secretary may 
waive this payment limitation for persons participating in 
a conservation reserve enhancement program if the Sec-
retary determines such a waiver is necessary to achieve 
the objectives of the conservation reserve enhancement 
program.’’. 
SEC. 7. CONSERVATION SECURITY PROGRAM. 
(a) REPEAL OF FUNDING CAP.—Section 1241(a)(3) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) 
is amended by striking ‘‘, using not more than’’ and all 
that follows through ‘‘2015’’. 
(b) PROGRAM EXTENSION.—Section 1238A(a) of 
such Act (16 U.S.C. 3838a(a)) is amended by striking 
‘‘2011’’ and inserting ‘‘2013’’. 
(c) ASSISTANCE
TO
CERTAIN
STATES.—Section 
1238A(b) of such Act (16 U.S.C. 3838a(b)) is amended 
by adding at the end the following new paragraph: 
‘‘(5) CONTINUOUS
ENROLLMENT.—The Sec-
retary shall provide for a continuous enrollment of 
eligible land in any State that, through a written 
agreement, is partnering with other States and the 
Federal government to achieve specific numeric re-
ductions in nutrient and sediment pollution loadings 
within a multi-State watershed in an effort to re-
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move the waters in that watershed from the list of 
impaired waters under the Clean Water Act.’’. 
(d) ENHANCED PAYMENTS FOR WATER QUALITY.— 
Section 3838C(b)(1)(C)(iii) of such Act (16 U.S.C. 
3838c(b)(1)(C)(iii)) is amended— 
(1) by striking ‘‘or’’ at the end of subclause 
(IV); 
(2) by striking the period at the end of sub-
clause (V) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
clause: 
‘‘(VI) implements practices that will sig-
nificantly improve water quality in watersheds 
associated with waters impaired by agricultural 
nutrients, with priority given to the most effec-
tive practices.’’. 
(e) DUTIES OF THE SECRETARY.—Section 3838c of 
such Act (16 U.S.C. 3838c) is amended by striking sub-
sections (f) and (g) and inserting the following new sub-
sections: 
‘‘(f) ENROLLMENT PRIORITY.—In any fiscal year in 
which funding for the conservation security program is 
limited, the Secretary shall prioritize contracts to address 
water quality in watersheds of water bodies impaired by 
nutrients, based on the degree to which a producer pro-
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poses to increase the management intensity with which the 
producer addresses nutrient impairment of water quality 
in the watershed. 
‘‘(g) PROHIBITED ALLOCATION FACTOR.—The Sec-
retary shall not use the total number of acres as an alloca-
tion factor. 
‘‘(h) TECHNICAL ASSISTANCE.—For each of fiscal 
years 2008 through 2013, the Secretary shall provide 
technical assistance to producers for the development and 
implementation of conservation security contracts in an 
amount based on actual cost, but not to exceed 23 percent 
of amounts expended for the fiscal year.’’. 
SEC. 8. COMPREHENSIVE PLANNING TECHNICAL ASSIST-
ANCE PILOT PROGRAM. 
Section 1242 of the Food Security Act of 1985 (16 
U.S.C. 3842) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) COMPREHENSIVE PLANNING TECHNICAL AS-
SISTANCE PILOT PROGRAM.— 
‘‘(1) CHESAPEAKE BAY WATERSHED.—The Sec-
retary shall establish a pilot program in the Chesa-
peake Bay watershed to assist producers with com-
prehensive conservation planning, design, and imple-
mentation, both before applying for assistance under 
any of the conservation programs authorized by sub-
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title D and through the process of design and imple-
mentation of conservation projects. 
‘‘(2) COMPREHENSIVE ASSESSMENT.—The pilot 
program will assist producers by making a com-
prehensive assessment of the resource concerns, 
needs, and alternative solutions for the producer’s 
entire operation, as determined by the Secretary, fol-
lowing the procedures in the Natural Resources Con-
servation Service conservation planning manual, and 
by providing technical assistance in design and im-
plementation of the solutions. 
‘‘(3) PROVISION OF ASSISTANCE.—Assistance to 
producers under the pilot program shall be provided 
by the Secretary directly or through third party pro-
viders certified by the Secretary. The results of the 
comprehensive planning, design, and implementation 
assistance shall be provided to the producer to en-
able informed choices on the type of financial assist-
ance available through conservation programs ad-
ministered by the Secretary under subtitle D that 
would most effectively address the resource needs of 
the operation consistent with the environmental 
goals for the area in which the operation is located. 
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‘‘(4) COST.—Assistance under the pilot pro-
gram shall be provided by the Secretary without cost 
to producers. 
‘‘(5) FUNDING.—The Secretary shall provide 
$10,000,000 of the funds of the Commodity Credit 
Corporation each of fiscal years 2008 through 2013 
to carry out the pilot program.’’. 
SEC. 9. WETLANDS RESERVE PROGRAM. 
(a) EXTENSION.— 
(1) FUNDING EXTENSION.—Section 1241(a)(2) 
of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(2)) is amended by striking ‘‘The’’ and in-
serting ‘‘For each of fiscal years 2002 through 
2013, the’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1237(c) of such Act (16 U.S.C. 3837(c)) is amended 
by striking ‘‘2007’’ and inserting ‘‘2013’’. 
(b) MAXIMUM AND YEARLY ENROLLMENT.—Section 
1237(b)(1) of such Act (16 U.S.C. 3837(b)(1)) is amend-
ed by striking ‘‘2,275,000 acres,’’ and all that follows 
through the period at the end and inserting ‘‘3,500,000 
acres, of which, to the maximum extent practicable, 5,000 
acres in calendar year 2008 and 10,000 acres in each of 
calendar years 2009 and 2010 shall be enrolled to meet 
State and Federal 2010 goals established pursuant to the 
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Chesapeake 2000 agreement for the Chesapeake Bay wa-
tershed.’’. 
(c) PRIORITY.—Section 1237 of such Act (16 U.S.C. 
3837) is amended by adding at the end the following new 
subsection: 
‘‘(g) PRIORITY.—The Secretary shall give priority to 
enrollments benefitting water quality and shall consider 
whether States are implementing the program consistent 
with these priorities when allocating program funding to 
states.’’ 
(d) ADDITIONAL PURPOSE.—Section 1237A(b)(3) of 
such Act (16 U.S.C. 3837a(b)(3)) is amended by inserting 
after ‘‘wetlands’’ the following: ‘‘, including the reduction 
of excess nutrients’’. 
(e) INCREASED COST SHARE.—Section 1237C(b)(2) 
of such Act (16 U.S.C. 3837c(b)(2)) is amended by adding 
at the end the following new sentence: ‘‘However, the Sec-
retary may increase the cost-share percentage if the res-
toration plan referred to in section 1237A(b) results in 
significant reduction of excess nutrients in watersheds of 
waterbodies impaired by agricultural nutrients or results 
in land placed under permanent easement.’’. 
(f) EASEMENT PRIORITY.—Section 1237C(d) of such 
Act (16 U.S.C. 3837c(d)) is amended by inserting before 
the period at the end the following: ‘‘or for achieving nu-
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trient reductions in watersheds of waterbodies impaired by 
agricultural nutrients’’. 
SEC. 10. AGRICULTURAL MANAGEMENT ASSISTANCE. 
(a) ADDITIONAL STATE.—Subsection (b)(1) of sec-
tion 524 of the Federal Crop Insurance Act (7 U.S.C. 
1524) is amended by inserting ‘‘Virginia,’’ after 
‘‘Vermont,’’. 
(b) FUNDING AND DURATION.—Subsection (b)(4)(B) 
of such section is amended— 
(1) in clause (ii)— 
(A) by striking ‘‘fiscal years 2003 through 
2007’’ and inserting ‘‘fiscal years 2008 through 
2013’’; and 
(B) by striking ‘‘$20,000,000’’ and insert-
ing ‘‘$50,000,000’’; and 
(2) in clause (iii)— 
(A) by striking ‘‘fiscal years 2004 through 
2007’’ and inserting ‘‘fiscal years 2008 through 
2013’’; 
(B) 
in 
subclause 
(I), 
by 
striking 
‘‘$14,000,000’’ and inserting ‘‘$38,000,000’’; 
(C) 
in 
subclause 
(II), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’; and 
(D) 
in 
subclause 
(III), 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 
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SEC. 11. BIOREFINERY AND BIOFUEL PROJECT GRANTS. 
(a) DEFINITIONS.—Subsection (b) of section 9003 of 
the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8103) is amended by— 
(1) redesignating paragraph (3) as paragraph 
(4); and 
(2) inserting after paragraph (3) the following 
new paragraph: 
‘‘(3) CHESAPEAKE BAY WATERSHED STATES.— 
The term ‘Chesapeake Bay Watershed States’ means 
the States of Delaware, Maryland, New York, Penn-
sylvania, Virginia, and West Virginia and the Dis-
trict of Columbia.’’. 
(b) ASSISTANCE METHODS.—Subsection (c) of such 
section is amended to read as follows: 
‘‘(c) ASSISTANCE.— 
‘‘(1) GRANTS.—The Secretary shall award 
grants and make loans and loan guarantees to eligi-
ble entities to assist in covering the cost of develop-
ment and construction of biorefineries to carry out 
projects to demonstrate the commercial viability of 
one or more processes for converting biomass to 
fuels or chemicals. 
‘‘(2) 
CHESAPEAKE
BAY
WATERSHED 
PROJECTS.—In the case of a project to be operated 
in one or more of the Chesapeake Bay Watershed 
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States, the Secretary shall award grants under this 
subsection for the purpose of developing and pro-
moting the commercial viability of no-till soybean 
biodiesel production, cellulosic ethanol production, 
manure to energy processes and technologies, and 
other technologies that promote the conversion of 
biomass to fuels and chemicals and the reduction of 
nutrient impacts to water quality.’’. 
(c) ENVIRONMENTAL
GOALS; DISTRIBUTION
OF 
GRANTS.—Subsection (e) of such section is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘and’’ at the end of clause 
(i); 
(B) by redesignating clause (ii) as clause 
(iii); and 
(C) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) shall select projects based upon 
the extent to which the projects meet envi-
ronmental goals for feed stocks and refin-
eries developed by the Secretary in con-
sultation with the Secretary of the Interior, 
the Secretary of Energy, the Administrator 
of the Environmental Protection Agency, 
and the National Academy of Sciences tak-
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ing into consideration clean water and air 
goals; and’’. 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) FUNDS FOR CHESAPEAKE BAY STATES.— 
The Secretary shall ensure that not less than 15 
percent of the total funds available under this sec-
tion are provided to projects operated in Chesapeake 
Bay Watershed States that benefit the Chesapeake 
Bay watershed .’’. 
(d) FUNDING.—Subsection (h) of such section is 
amended to read as follows: 
‘‘(h) Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use $100,000,000 for each of fis-
cal years 2008 through 2013 to carry out this section.’’. 
SEC. 12. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFI-
CIENCY IMPROVEMENTS PROGRAM. 
Section 9006 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8106) is amended— 
(1) in subsection (c)— 
(A) by striking paragraph (2)(C) and in-
serting the following: 
‘‘(C) the expected environmental benefits 
of the renewable energy system, including in 
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watersheds of bodies of water degraded by agri-
cultural nutrients and to water quality;’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) 
PREFERENCE
FOR
COMMUNITY 
PROJECTS.—The Secretary shall give preference in 
funding and grant and loan selection to activities 
that the Secretary determines— 
‘‘(A) are undertaken jointly by more than 
one eligible entity in a local community; 
‘‘(B) involve direct cooperation between 
two or more eligible entities; and 
‘‘(C) foster community or cooperative ap-
proaches to renewable energy and energy effi-
ciency development.’’; and 
(2) by striking subsection (f) and inserting the 
following: 
‘‘(f) PRODUCTION-BASED INCENTIVE
IN LIEU
OF 
GRANT.— 
‘‘(1) IN GENERAL.—In addition to the authority 
under subsection (a), the Secretary may, on the re-
quest of an applicant the Secretary determines is eli-
gible under subsection (b), make production-based 
payments to the applicant in lieu of a grant. 
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‘‘(2) CONTINGENCY.—The Secretary shall only 
make a payment under paragraph (1) if the appli-
cant provides the Secretary with documentation 
showing energy production and sales from a renew-
able energy system to a third party. 
‘‘(3) LIMITATION.—The total net present value 
of a production-based incentive may not exceed the 
lower of— 
‘‘(A) 25 percent of the eligible project 
costs; and 
‘‘(B) any other limits that the Secretary 
establishes by rule or guidance. 
‘‘(g) DISTRIBUTION
OF GRANTS.—The Secretary 
shall ensure that not less than 15 percent of the grants, 
loans, and loan guarantees provided under this section are 
provided to projects in Chesapeake Bay Watershed States 
that benefit the Chesapeake Bay watershed. 
‘‘(h) DEFINITION.—In this section, the term ‘Chesa-
peake Bay Watershed States’ means the States of Dela-
ware, Maryland, New York, Pennsylvania, Virginia, and 
West Virginia and the District of Columbia. 
‘‘(i) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section— 
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‘‘(1) $60,000,000 for fiscal year 2008, to re-
main available until expended; 
‘‘(2) $90,000,000 for fiscal year 2009, to re-
main available until expended; 
‘‘(3) $130,000,000 for fiscal year 2010, to re-
main available until expended; 
‘‘(4) $180,000,000 for fiscal year 2011, to re-
main available until expended; and 
‘‘(5) $250,000,000 for fiscal year 2012, to re-
main available until expended.’’. 
Æ 
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