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by increasing the participation of producers in im-
plementing best management practices in a water-
shed or developing environmentally and economically 
viable alternative uses for manure and litter; 
‘‘(2) to achieve improvements in air quality in 
a geographical area where agricultural operations 
impact air quality; 
‘‘(3) to support State activities to efficiently 
manage and utilize their water resources in regions, 
States or local areas where water quantity is a con-
cern; 
‘‘(4) to assist in carrying out a State Wildlife 
Habitat Incentives Program plan or other State, re-
gional, or national conservation initiative. 
‘‘(5) to control invasive species on rangeland or 
other agricultural land through the cooperative ef-
forts of multiple producers in a geographical area; 
‘‘(6) to address a specific resource of concern or 
set of concerns on private, non-industrial forest land; 
‘‘(7) to reduce losses of pesticides to the envi-
ronment by engaging multiple producers in a geo-
graphic area in adoption of integrated pest manage-
ment practices and approaches; 
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‘‘(8) to protect farmland and ranch land facing 
development pressures from being converted to non- 
agricultural use; or 
‘‘(9) to assist producers in carrying out good 
management practices to enhance food safety. 
‘‘(g) DUTIES
OF
PARTNERS.—Eligible partners 
shall— 
‘‘(1) identify conservation issues affecting pro-
duction agriculture on local, regional, or State levels 
that could be addressed through special projects and 
initiatives; 
‘‘(2) enter into agreements or obtain grants 
from the Secretary to carry out special projects and 
initiatives; 
‘‘(3) identify through outreach efforts producers 
that can participate in the special project or initia-
tive of the eligible entity if the producer is otherwise 
eligible to be enrolled, as determined by the Sec-
retary, or has already enrolled, in the applicable pro-
gram described in subsection (b); and 
‘‘(4) carry out the special project and initiative. 
‘‘(h) DUTIES OF THE SECRETARY.— 
‘‘(1) ADDITIONAL DUTIES.—In addition to the 
normal administration of the programs described in 
subsection (b), the Secretary shall be responsible for 
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basic administrative and oversight functions relating 
to the special projects and initiatives, including— 
‘‘(A) rules and procedures relating to con-
servation standards and specifications; 
‘‘(B) conservation compliance; 
‘‘(C) appeals; 
‘‘(D) adjusted gross income limitations; 
‘‘(E) direct attribution; and 
‘‘(F) such other similar functions as the 
Secretary might designate. 
‘‘(2) FLEXIBILITY.—The Secretary may adjust 
eligibility criteria, approved practices, practice stand-
ards, innovative conservation practices, and other 
elements of the programs described in subsection (b) 
to better reflect unique local circumstances and pur-
poses if the Secretary determines such adjustments 
would— 
‘‘(A) improve environmental enhancement 
and long-term sustainability of the natural re-
source base; and 
‘‘(B) be consistent with the purposes of the 
program and the special project and initiative. 
‘‘(3) PREFERENTIAL ENROLLMENT.—Subject to 
the limitations under subsection (j), the Secretary 
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shall provide preferential enrollment to producers 
that are eligible— 
‘‘(A) for the applicable program described 
in subsection (b); and 
‘‘(B) to participate in the special project 
and initiative of an eligible partner. 
‘‘(i) COST SHARE.—The Secretary shall not require 
more than 25 percent of the cost of a project or initiative 
supported under a grant or agreement entered into under 
this section to come from non-Federal sources. However, 
the Secretary may give higher priority to projects or initia-
tives offering to cover a higher percentage of the cost of 
the project or initiative from non-Federal sources. 
‘‘(j) INCENTIVE AND BONUS PAYMENTS.— 
‘‘(1) AVAILABILITY.—Applications submitted 
under subsection (d)(2) may include proposals for 
special incentive and bonus payments, consistent 
with the statutory purposes of the programs in-
volved, to producers that— 
‘‘(A) restore land, water, or habitat as a 
community development asset; or 
‘‘(B) provide public access to enrolled land. 
‘‘(2) CRITERIA.—The Secretary shall develop 
and publish criteria for providing special incentive or 
bonus payments to producers under paragraph (1). 
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‘‘(k) FUNDING.— 
‘‘(1) SET-ASIDE.—Of the funds provided for 
each of fiscal years 2008 through 2012 to implement 
the programs specified in subsection (b), the Sec-
retary shall reserve 10 percent to ensure an ade-
quate source of funds for grants, agreements, finan-
cial assistance to producers under this section. 
‘‘(2) ALLOCATION TO STATES.—The Secretary 
shall allocate to States 90 percent of the funds re-
served under paragraph (1) for a fiscal year to allow 
State Conservationists, with the advice of State tech-
nical committees, to select projects and initiatives 
for funding under this section at the State level. The 
Secretary shall develop criteria for this allocation 
made on a similar basis as to the program priorities 
under subsection (f). 
‘‘(3) UNUSED FUNDING.—Any funds reserved 
for a fiscal year under paragraph (1) that are not 
obligated by April 1 of that fiscal year may be used 
to carry out other activities under conservation pro-
grams under subtitle D during the remainder of that 
fiscal year. 
‘‘(4) ADMINISTRATIVE COSTS FUNDING CAP.— 
Of the funds made available under this section for 
a particular project or initiative, not more than 5 
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percent may be expended by the eligible entity on 
the administrative costs of the project or initiative.’’. 
SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY. 
Section 1241(d) of the Food Security Act of 1985 
(16 
U.S.C. 
3841(d)) 
is 
amended 
by 
striking 
‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’. 
SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CON-
SERVATION PROGRAMS. 
(a) INCENTIVES FOR CERTAIN PRODUCERS.—Section 
1244(a) of the Food Security Act of 1985 (16 U.S.C. 
3844(a)) is amended— 
(1) in the subsection heading, by striking ‘‘BE-
GINNING’’ and inserting ‘‘INCENTIVES
FOR CER-
TAIN’’; 
(2) by inserting ‘‘, socially disadvantaged farm-
ers and ranchers, limited resource farmers and 
ranchers,’’ after ‘‘beginning farmers and ranchers’’; 
and 
(3) by striking ‘‘and limited resource agricul-
tural producers’’. 
(b) SINGLE, SIMPLIFIED APPLICATION PROCESS FOR 
CONSERVATION PROGRAMS.—Section 1244 of the Food 
Security Act of 1985 (16 U.S.C. 3844), as amended by 
section 2403, is amended by adding at the end the fol-
lowing new subsection: 
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‘‘(f) SINGLE, SIMPLIFIED APPLICATION PROCESS.— 
‘‘(1) ESTABLISHMENT.—In carrying out any of 
the conservation programs under this title adminis-
tered by the Natural Resources Conservation Serv-
ice, the Secretary shall establish and make available 
to producers and landowners a single, simplified ap-
plication process to be used by producers and land-
owners in initially requesting assistance under such 
programs. The Secretary shall ensure that— 
‘‘(A) conservation program applicants are 
not required to provide information that dupli-
cates information and resources already avail-
able to the Secretary regarding that applicant 
and for that specific operation; and 
‘‘(B) the application process is streamlined 
to minimize complexity and redundancy. 
‘‘(2) REVIEW OF APPLICATION PROCESS.—The 
Secretary shall review the conservation application 
process and the forms and related mechanisms used 
to receive assistance requests from producers and 
landowners. The purpose of the review shall be to 
determine what information the applicant is actually 
required to submit during the application process, 
including— 
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‘‘(A) identification information for the ap-
plicant; 
‘‘(B) identification and location informa-
tion for the land parcel or tract of concern; 
‘‘(C) a general statement of the applicant’s 
resource concern or concerns for the land parcel 
or tract; and 
‘‘(D) the minimum amount of other infor-
mation the Secretary considers essential for the 
applicant to provide. 
‘‘(3) REVISION AND STREAMLINING.—The Sec-
retary shall carry out a revision of the application 
forms and processes for conservation programs cov-
ered in this subsection to enable utilization of infor-
mation technology as an avenue to incorporate ap-
propriate data and information concerning the con-
servation needs and solutions appropriate for the 
land area identified by the applicant. The revision 
shall seek to streamline the application process to 
minimize the burden placed on the applicant. 
‘‘(4) CONSERVATION PROGRAM APPLICATION.— 
When the needs of an applicant are adequately as-
sessed by the Secretary, directly or through a third- 
party provider under section 1242, in order to deter-
mine the conservation programs under this title that 
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best match the needs of the applicant, with the ap-
proval of the applicant, the Secretary may convert 
the initial application into a specific application for 
assistance for a specific program. To the maximum 
extent practical, the specific application for con-
servation program assistance shall be carried out by 
the Secretary by requesting only that specific further 
information from the applicant that is not already 
available to the Secretary. 
‘‘(5) IMPLEMENTATION
AND
NOTIFICATION.— 
Not later than one year after the date of the enact-
ment of the Farm, Nutrition, and Bioenergy Act of 
2007, the Secretary shall complete the requirements 
of this subsection and shall submit to Congress a 
written notification of such completion.’’. 
SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPE-
CIALTY CROP PRODUCERS IN CONSERVA-
TION PROGRAMS. 
(a) REPORT REQUIRED.—Subtitle F of title XII of 
the Food Security Act of 1985 is amended by inserting 
after section 1251 (16 U.S.C. 2005a) the following new 
section: 
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‘‘SEC. 1252. ANNUAL REPORT ON PARTICIPATION BY SPE-
CIALTY CROP PRODUCERS IN CONSERVA-
TION PROGRAMS. 
‘‘(a) REPORT REQUIRED.—The Secretary of Agri-
culture shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate an annual 
report that— 
‘‘(1) documents and analyzes the participation 
by producers of specialty crops in conservation pro-
grams under subtitle D, including the conservation 
security program and the environmental quality in-
centives program; 
‘‘(2) tracks such participation by crop and live-
stock type; and 
‘‘(3) describes the results of implementing the 
plan required by subsection (b), as well as any modi-
fications to the plan that the Secretary finds nec-
essary to increase its effectiveness. 
‘‘(b) ACCESS PLAN.—As part of each report sub-
mitted under subsection (a), the Secretary shall set forth 
a plan to improve the access of producers of specialty 
crops to, and their participation in, conservation programs 
under subtitle D. In developing the plan, the Secretary 
shall consult with organizations representing producers of 
specialty crops. 
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‘‘(c) SPECIALTY CROP DEFINED.—In this section, 
the term ‘specialty crop’ has the meaning given such term 
by section 3(1) of the Specialty Crops Competitiveness Act 
of 2004 (Public Law 108–465; 7 U.S.C. 1621 note).’’. 
(b) INITIAL REPORT.—The first report required 
under section 1252 of the Food Security Act of 1985, as 
added by subsection (a), shall be submitted not later than 
180 days after the date of the enactment of this Act. Sub-
section (a)(2) of such section shall not apply with respect 
to the first report. 
SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES 
TO CONSERVATION. 
(a) FINDINGS.—Congress finds the following: 
(1) Many of the conservation and environmental 
benefits produced on farms, ranches, and private 
forest lands in the United States do not have an as-
signed value in the market place or lack a private 
market altogether. 
(2) While private markets for environmental 
goods and services are emerging, their viability has 
been hampered by several barriers. 
(3) The Federal Government can help overcome 
these barriers and promote the establishment of 
markets for agricultural and forestry conservation 
activities. 
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(4) Generating substantial private-sector de-
mand for environmental goods and services hinges 
on the ability to use environmental credits generated 
by agricultural and forest conservation activities. 
(b) MARKET-BASED APPROACHES.—Subtitle E of 
title XII of the Food Security Act of 1985 is amended 
by inserting after section 1244 (16 U.S.C. 3844) the fol-
lowing new section: 
‘‘SEC. 1245. MARKET-BASED APPROACHES TO CONSERVA-
TION. 
‘‘(a) IMPLEMENTATION.—To facilitate the develop-
ment and effective operation of private sector market- 
based approaches for environmental goods and services 
produced by farmers, ranchers, and owners of private for-
est land, the Secretary may conduct research and analysis, 
enter into contracts and cooperative agreements, and 
award grants for the purpose of— 
‘‘(1) promoting the development of consistent 
standards and processes for quantifying environ-
mental benefits, including the creation of perform-
ance standards or baselines; 
‘‘(2) promoting the establishment of reporting 
and 
credit 
registries, 
including 
third-party 
verification and certification; and 
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‘‘(3) promoting actions that facilitate the devel-
opment and functioning of private-sector market- 
based approaches for environmental goods and serv-
ices involving agriculture and forestry. 
‘‘(b) 
ENVIRONMENTAL
SERVICES
STANDARDS 
BOARD.— 
‘‘(1) ESTABLISHMENT.—There is to be estab-
lished an Environmental Services Standards Board 
to develop consistent performance standards for 
quantifying environmental services from land man-
agement and agricultural activities in order to facili-
tate the development of credit markets for conserva-
tion and land management activities that are agri-
culture or forest based. 
‘‘(2) CHAIRPERSON.—The Secretary of Agri-
culture shall serve as chair of the Environmental 
Services Standards Board. 
‘‘(3) MEMBERSHIP.—The Environmental Serv-
ices Standards Board shall be comprised of the Sec-
retary of Agriculture, the Secretary of the Interior, 
the Secretary of Energy, the Secretary of Com-
merce, the Secretary of Transportation, the Admin-
istrator of the Environmental Protection Agency, the 
Commander of the Army Corps of Engineers, and 
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such other representatives as determined by the 
President. 
‘‘(4) 
SUBCOMMITTEES.—The 
Environmental 
Services Standards Board may form subcommittees 
to address specific issues. 
‘‘(c) DISSEMINATION
OF
PERFORMANCE
STAND-
ARDS.—Federal agencies are authorized to adopt perform-
ance standards developed by the Environmental Services 
Standards Board for quantifying environmental services 
that establish credits to meet requirements of environ-
mental and conservation programs. 
‘‘(d) FUNDING .—There is authorized to be appro-
priated $50,000,000 to carry out this section. Amounts 
so appropriated shall remain available until expended. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) BASELINE.—The term ‘baseline’ means a 
level of effort or performance that is expected to be 
met before an entity can generate marketable cred-
its. 
‘‘(2) PERFORMANCE
STANDARD.—The term 
‘performance standard’ means a defined level of en-
vironmental performance, expressed as a narrative 
or measurable number, which specifies the minimum 
acceptable environmental performance of an oper-
ation or practice.’’. 
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SEC. 2408. ESTABLISHMENT OF STATE TECHNICAL COM-
MITTEES AND THEIR RESPONSIBILITIES. 
Subtitle G of title XII of the Farm Security Act of 
1985 (16 U.S.C. 3861, 3862) is amended to read as fol-
lows: 
‘‘Subtitle G—State Technical 
Committees 
‘‘SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COM-
MITTEES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a technical committee in each State to assist the Sec-
retary in the considerations relating to implementation 
and technical aspects of the conservation programs under 
this title. 
‘‘(b) COMPOSITION.—Each State technical committee 
shall be composed of agricultural producers and other pro-
fessionals that represent a variety of disciplines in the soil, 
water, wetland, and wildlife sciences. The technical com-
mittee for a State shall include representatives from 
among the following: 
‘‘(1) The Natural Resources Conservation Serv-
ice. 
‘‘(2) The Farm Service Agency. 
‘‘(3) The Forest Service. 
‘‘(4) The Cooperative State Research, Edu-
cation, and Extension Service. 
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‘‘(5) The State fish and wildlife agency. 
‘‘(6) The State forester or equivalent State offi-
cial. 
‘‘(7) The State water resources agency. 
‘‘(8) The State department of agriculture. 
‘‘(9) The State association of soil and water 
conservation districts. 
‘‘(10) At least 12 agricultural producers rep-
resenting the variety of crops and livestock or poul-
try grown within the State. 
‘‘(11) Nonprofit organizations within the mean-
ing of section 501(c)(3) of the Internal Revenue 
Code of 1986 with demonstrable conservation exper-
tise and experience working with agriculture pro-
ducers in the State. 
‘‘(12) Agribusiness. 
‘‘(c) SUBCOMMITTEES.—A State technical committee 
shall convene one or more subcommittees to provide tech-
nical guidance and implementation recommendations. The 
topics that a subcommittee shall address shall include, at 
a minimum, the following: 
‘‘(1) Establishing priorities and criteria for 
State initiatives under the programs in this title, in-
cluding the review of whether local working groups 
are addressing those priorities. 
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