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‘‘(B) not less than $75,000,000 shall be obli-
gated to carry out section 385C(f); and
‘‘(C) not less than $2,000,000 shall be obli-
gated to carry out section 385C(h).
‘‘(3) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this subtitle the funds transferred under
paragraph (1), without further appropriation.
‘‘(b) FISCAL YEARS 2004 THROUGH 2006.—There are
authorized to be appropriated such sums as are necessary
to carry out this subtitle for each of fiscal years 2004
through 2006.’’.
SEC. 605. ENHANCEMENT OF ACCESS TO BROADBAND SERV-
ICE IN RURAL AREAS.
The Rural Electrification Act of 1936 (7 U.S.C. 901
et seq.) is amended by adding at the end the following:
‘‘TITLE VI—RURAL BROADBAND
ACCESS
‘‘SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS
SERVICES IN RURAL AREAS.
‘‘(a) PURPOSE.—The purpose of this section is to pro-
vide grants, loans, and loan guarantees to provide funds
for the costs of the construction, improvement, and acquisi-
tion of facilities and equipment for broadband service in
eligible rural communities.
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‘‘(b) DEFINITIONS.—In this section:
‘‘(1) 
BROADBAND
SERVICE.—The 
term
‘broadband service’ means any technology identified
by the Secretary as having the capacity to transmit
data to enable a subscriber to the service to originate
and receive high-quality voice, data, graphics, or
video.
‘‘(2) ELIGIBLE RURAL COMMUNITY.—The term
‘eligible rural community’ means any incorporated or
unincorporated place that—
‘‘(A) has not more than 20,000 inhabitants,
based on the most recent available population
statistics of the Bureau of the Census; and
‘‘(B) is not located in an area designated as
a standard metropolitan statistical area.
‘‘(c) GRANTS.—The Secretary shall make grants to eli-
gible entities described in subsection (e) to provide funds
for the construction, improvement, or acquisition of facili-
ties and equipment for the provision of broadband service
in eligible rural communities.
‘‘(d) LOANS AND LOAN GUARANTEES.—The Secretary
shall make or guarantee loans to eligible entities described
in subsection (e) to provide funds for the construction, im-
provement, or acquisition of facilities and equipment for
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the provision of broadband service in eligible rural commu-
nities.
‘‘(e) ELIGIBLE ENTITIES.—To be eligible to obtain a
grant, loan, or loan guarantee under this section, an entity
must—
‘‘(1) be able to furnish, improve, or extend a
broadband service to an eligible rural community;
and
‘‘(2) submit to the Secretary a proposal for a
project that meets the requirements of this section.
‘‘(f) BROADBAND SERVICE.—The Secretary shall, from
time to time as advances in technology warrant, review and
recommend modifications of rate-of-data transmission cri-
teria for purposes of the identification of broadband service
technologies under subsection (b)(1).
‘‘(g) TECHNOLOGICAL NEUTRALITY.—For purposes of
determining whether or not to make a grant, loan, or loan
guarantee for a project under this section, the Secretary
shall not take into consideration the type of technology pro-
posed to be used under the project.
‘‘(h) TERMS AND CONDITIONS FOR LOANS AND LOAN
GUARANTEES.—A loan or loan guarantee under subsection
(d) shall—
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‘‘(1) be made available in accordance with the
requirements of the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.);
‘‘(2) bear interest at an annual rate of, as deter-
mined by the Secretary—
‘‘(A) 4 percent per annum; or
‘‘(B) the current applicable market rate;
and
‘‘(3) have a term not to exceed the useful life of
the assets constructed, improved, or acquired with the
proceeds of the loan or extension of credit.
‘‘(i) USE OF LOAN PROCEEDS TO REFINANCE LOANS
FOR DEPLOYMENT
OF BROADBAND SERVICE.—Notwith-
standing any other provision of this Act, the proceeds of
any loan made by the Secretary under this Act may be used
by the recipient of the loan for the purpose of refinancing
an outstanding obligation of the recipient on another tele-
communications loan made under this Act if the use of the
proceeds for that purpose will further the construction, im-
provement, or acquisition of facilities and equipment for
the provision of broadband service in eligible rural commu-
nities.
‘‘(j) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this Act, and on October 1,
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2002, and each October 1 thereafter through October
1, 2005, out of any funds in the Treasury not other-
wise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out
this section $100,000,000, to remain available until
expended.
‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.
‘‘(3) ALLOCATION OF FUNDS.—
‘‘(A) IN
GENERAL.—From amounts made
available for each fiscal year under paragraph
(1), the Secretary shall—
‘‘(i) establish a national reserve for
grants, loans, and loan guarantees to eligi-
ble entities in States under this section; and
‘‘(ii) allocate amounts in the reserve to
each State for each fiscal year for grants,
loans, and loan guarantees to eligible enti-
ties in the State.
‘‘(B) AMOUNT.—The amount of an alloca-
tion made to a State for a fiscal year under sub-
paragraph (A) shall bear the same ratio to the
amount of allocations made for all States for the
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fiscal year as the number of communities with a
population of 2,500 inhabitants or less in the
State bears to the number of communities with
a population of 2,500 inhabitants or less in all
States, as determined on the basis of the last
available census.
‘‘(C) 
UNOBLIGATED
AMOUNTS.—Any
amounts in the reserve established for a State for
a fiscal year under subparagraph (B) that are
not obligated by April 1 of the fiscal year shall
be available to the Secretary to make grants,
loans, and loan guarantees under this section to
eligible entities in any State, as determined by
the Secretary.
‘‘(k) GRANTS FOR PLANNING AND FEASIBILITY STUD-
IES ON BROADBAND DEPLOYMENT.—
‘‘(1) IN
GENERAL.—In addition to any other
grants, loans, or loan guarantees made under this sec-
tion, the Secretary shall make grants to eligible enti-
ties specified in paragraph (2) for planning and fea-
sibility studies carried out by those entities on the de-
ployment of broadband services in the areas served by
those entities.
‘‘(2) ELIGIBLE ENTITIES.—The entities eligible
for grants under this subsection are—
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‘‘(A) State governments;
‘‘(B) local governments (including consortia
of local governments);
‘‘(C) tribal governments;
‘‘(D) telecommunications cooperatives; and
‘‘(E) appropriate State and regional non-
profit entities (as determined by the Secretary).
‘‘(3) ELIGIBILITY CRITERIA.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish criteria for eligibility for grants under
this subsection, including criteria for the scope of
the planning and feasibility studies to be carried
out with grants under this subsection.
‘‘(B) CONTRIBUTION BY GRANTEE.—An en-
tity may not be awarded a grant under this sub-
section unless the entity agrees to contribute (out
of funds other than the grant amount) to the
planning and feasibility study to be funded by
the grant an amount equal to the amount of the
grant.
‘‘(4) APPLICATION.—An entity seeking a grant
under this subsection shall submit to the Secretary an
application for the grant that is in such form, and
that contains such information, as the Secretary shall
require.
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‘‘(5) USE OF GRANT AMOUNTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), an entity that receives a grant under
this subsection shall use the grant amount for
planning and feasibility studies on the deploy-
ment of broadband services in the area of—
‘‘(i) an Indian tribe;
‘‘(ii) a local government;
‘‘(iii) a State;
‘‘(iv) a region of a State; or
‘‘(v) a region of States.
‘‘(B) LIMITATION.—Grant amounts under
this subsection may not be used for the construc-
tion of buildings or other facilities, the acquisi-
tion or improvement of existing buildings or fa-
cilities, or the leasing of office space.
‘‘(6) LIMITATION ON GRANT AMOUNTS.—
‘‘(A) STATEWIDE GRANTS.—The amount of
the grants made under this subsection in or with
respect to any State in any fiscal year may not
exceed $250,000.
‘‘(B) LOCAL
GOVERNMENT, REGIONAL, OR
TRIBAL
GRANTS.—The amount of the grants
made under this subsection in or with respect to
any local government, region, or tribal govern-
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ment in any fiscal year may not exceed
$100,000.
‘‘(7) RESERVATION OF FUNDS FOR GRANTS.—
‘‘(A) IN GENERAL.—For each fiscal year, up
to 3 percent of the funds made available to carry
out this section for the fiscal year shall be re-
served for grants under this subsection.
‘‘(B) RELEASE.—Funds reserved under sub-
paragraph (A) for a fiscal year shall be reserved
only until April 1 of the fiscal year.
‘‘(8) SUPPLEMENT NOT SUPPLANT.—
‘‘(A) IN GENERAL.—Eligibility for a grant
under this subsection shall not affect eligibility
for a grant, loan, or loan guarantee under an-
other subsection of this section.
‘‘(B) 
CONSIDERATIONS.—The 
Secretary
shall not take into account the award of a grant
under this subsection, or the award of a grant,
loan, or loan guarantee under another subsection
of this section, in awarding a grant, loan, or
loan guarantee under this subsection or another
subsection of this section, as the case may be.
‘‘(l) TERMINATION OF AUTHORITY.—
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‘‘(1) IN
GENERAL.—No grant, loan, or loan
guarantee may be made under this section after Sep-
tember 30, 2006.
‘‘(2) EFFECT ON VALIDITY OF GRANT, LOAN, OR
LOAN GUARANTEE.—Notwithstanding paragraph (1),
any grant, loan, or loan guarantee made under this
section before the date specified in paragraph (1)
shall be valid.’’.
SEC. 606. VALUE-ADDED AGRICULTURAL PRODUCT MARKET
DEVELOPMENT GRANTS.
Section 231 of the Agricultural Risk Protection Act of
2000 (7 U.S.C. 1621 note; Public Law 106–224) is
amended—
(1) by redesignating subsections (b) through (d)
as subsections (c) through (e), respectively;
(2) by striking subsection (a) and inserting the
following:
‘‘(a) DEFINITION OF VALUE-ADDED AGRICULTURAL
PRODUCT.—The term ‘value-added agricultural product’
means any agricultural commodity or product that—
‘‘(1)(A) has undergone a change in physical
state; or
‘‘(B) was produced in a manner that enhances
the value of the agricultural commodity or product, as
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demonstrated through a business plan that shows the
enhanced value, as determined by the Secretary; and
‘‘(2) as a result of the change in physical state
or the manner in which the agricultural commodity
or product was produced—
‘‘(A) the customer base for the agricultural
commodity or product has been expanded; and
‘‘(B) a greater portion of the revenue de-
rived from the processing of the agricultural
commodity or product is available to the pro-
ducer of the commodity or product.
‘‘(b) GRANT PROGRAM.—
‘‘(1) PURPOSES.—The purposes of this subsection
are—
‘‘(A) to increase the share of the food and
agricultural system profit received by agricul-
tural producers;
‘‘(B) to increase the number and quality of
rural self-employment opportunities in agri-
culture and agriculturally-related businesses and
the number and quality of jobs in agriculturally-
related businesses;
‘‘(C) to help maintain a diversity of size in
farms and ranches by stabilizing the number of
small and mid-sized farms;
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‘‘(D) to increase the diversity of food and
other agricultural products available to con-
sumers, including nontraditional crops and
products and products grown or raised in a
manner that enhances the value of the products
to the public; and
‘‘(E) to conserve and enhance the quality of
land, water, and energy resources, wildlife habi-
tat, and other landscape values and amenities in
rural areas.
‘‘(2) GRANTS.—From amounts made available
under paragraph (6), the Secretary shall make award
competitive grants—
‘‘(A) to an eligible independent producer (as
determined by the Secretary) of a value-added
agricultural product to assist the producer—
‘‘(i) to develop a business plan for via-
ble marketing opportunities for the value-
added agricultural product; or
‘‘(ii) to develop strategies that are in-
tended to create marketing opportunities for
the producer; and
‘‘(B) to an eligible nonprofit entity (as de-
termined by the Secretary) to assist the entity—
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‘‘(i) to develop a business plan for via-
ble marketing opportunities in emerging
markets for a value-added agricultural
product;
‘‘(ii) to develop strategies that are in-
tended to create marketing opportunities in
emerging markets for the value-added agri-
cultural product; or
‘‘(iii) to create, expand, or operate
value-added processing in an area described
in paragraph (3)(B)(ii) in connection with
production agriculture.
‘‘(3) AMOUNT OF GRANT.—
‘‘(A) IN GENERAL.—The total amount pro-
vided under this subsection to a grant recipient
may not exceed $500,000.
‘‘(B) PRIORITY.—The Secretary shall give
priority to—
‘‘(i) grant proposals for less than
$200,000 submitted under this subsection;
and
‘‘(ii) grant proposals submitted by an
eligible nonprofit entity with a principal of-
fice that is located—
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‘‘(I) on land of an existing or
former Native American reservation;
and
‘‘(II) in a city, town, or unincor-
porated area that has a population of
no more than 5,000 inhabitants.
‘‘(4) GRANTEE STRATEGIES.—A grantee under
paragraph (2) shall use the grant—
‘‘(A) to develop a business plan or perform
a feasibility study to establish a viable mar-
keting opportunity for a value-added agricul-
tural product; or
‘‘(B) to provide capital to establish alliances
or business ventures that allow the producer of
the value-added agricultural product to better
compete in domestic or international markets.
‘‘(5) GRANTS FOR MARKETING OR PROCESSING
CERTIFIED ORGANIC AGRICULTURAL PRODUCTS.—
‘‘(A) IN
GENERAL.—Out of any amount
that is made available to the Secretary for a fis-
cal year under paragraph (2), the Secretary
shall use not less than 5 percent of the amount
for grants to assist producers of certified organic
agricultural products in post-farm marketing or
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processing of the products through a business or
cooperative ventures that—
‘‘(i) expand the customer base of the
certified organic agricultural products; and
‘‘(ii) increase the portion of product
revenue available to the producers.
‘‘(B) CERTIFIED
ORGANIC
AGRICULTURAL
PRODUCT.—For the purposes of this paragraph,
a certified organic agricultural product does not
have to meet the requirements of the definition of
‘value-added agricultural product’ under sub-
section (a).
‘‘(C) INSUFFICIENT APPLICATIONS.—If, for
any fiscal year, the Secretary receives an insuffi-
cient quantity of applications for grants de-
scribed in subparagraph (A) to use the funds re-
served under subparagraph (A), the Secretary
may use the excess reserved funds to make grants
for any other purpose authorized under this sub-
section.
‘‘(6) FUNDING.—
‘‘(A) IN GENERAL.—Not later than 30 days
after the date of enactment of this paragraph,
and on October 1, 2002, and each October 1
thereafter through October 1, 2005, out of any
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funds in the Treasury not otherwise appro-
priated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry
out this subsection $75,000,000, to remain avail-
able until expended.
‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept,
and shall use to carry out this subsection the
funds transferred under subparagraph (A), with-
out further appropriation.’’;
(3) in subsection (c)(1) (as redesignated)—
(A) by striking ‘‘subsection (a)(2)’’ and in-
serting ‘‘subsection (b)(2)’’;
(B) by striking ‘‘$5,000,000’’ and inserting
‘‘7.5 percent’’; and
(C) by striking ‘‘subsection (a)’’ and insert-
ing ‘‘subsection (b)’’; and
(4) in subsection (d) (as redesignated), by strik-
ing ‘‘subsections (a) and (b)’’ and inserting ‘‘sub-
sections (b) and (c)’’.
SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION
CLEARINGHOUSE.
Section 2381 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125b) is amended to read
as follows:
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‘‘SEC. 2381. NATIONAL RURAL DEVELOPMENT INFORMA-
TION CLEARINGHOUSE.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
and maintain, within the rural development mission area
of the Department of Agriculture, a National Rural Devel-
opment Information Clearinghouse (referred to in this sec-
tion as the ‘Clearinghouse’) to perform the functions speci-
fied in subsection (b).
‘‘(b) FUNCTIONS.—The Clearinghouse shall collect in-
formation and data from, and disseminate information and
data to, any person or public or private entity about pro-
grams and services provided by Federal, State, local, and
tribal agencies, institutions of higher education, and pri-
vate, for-profit, and nonprofit organizations and institu-
tions under which a person or public or private entity re-
siding or operating in a rural area may be eligible for any
kind of financial, technical, or other assistance, including
business, venture capital, economic, credit and community
development assistance, health care, job training, education,
and emotional and financial counseling.
‘‘(c) MODES OF COLLECTION AND DISSEMINATION OF
INFORMATION.—In addition to other modes for the collec-
tion and dissemination of the types of information and data
specified under subsection (b), the Secretary shall ensure
that the Clearinghouse maintains an Internet website that
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provides for dissemination and collection, through vol-
untary submission or posting, of the information and data.
‘‘(d) FEDERAL AGENCIES.—On request of the Sec-
retary and to the extent permitted by law, the head of a
Federal agency shall provide to the Clearinghouse such in-
formation as the Secretary may request to enable the Clear-
inghouse to carry out this section.
‘‘(e) STATE, LOCAL, AND TRIBAL AGENCIES, INSTITU-
TIONS OF HIGHER EDUCATION, AND NONPROFIT AND FOR-
PROFIT
ORGANIZATIONS.—The Secretary shall request
State, local, and tribal agencies, institutions of higher edu-
cation, and private, for-profit, and nonprofit organizations
and institutions to provide to the Clearinghouse informa-
tion concerning applicable programs or services described
in subsection (b).
‘‘(f) PROMOTION OF CLEARINGHOUSE.—The Secretary
prominently shall promote the existence and availability of
the Clearinghouse in all activities of the Department of Ag-
riculture relating to rural areas of the United States.
‘‘(g) FUNDING.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall use to operate and maintain the
Clearinghouse not more than $600,000 of the funds
available to the Rural Housing Service, the Rural
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Utilities Service, and the Rural Business-Cooperative
Service for each fiscal year.
‘‘(2) LIMITATION.—Funds available to the Rural
Housing Service, the Rural Utilities Service, and the
Rural Business-Cooperative Service for the payment
of loan costs (as defined in section 502 of Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) shall not
be used to operate and maintain the Clearinghouse.’’.
Subtitle B—National Rural
Development Partnership
SEC. 611. SHORT TITLE.
This subtitle may be cited as the ‘‘National Rural De-
velopment Partnership Act of 2002’’.
SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1981 et seq.) is amended by adding
at the end the following:
‘‘SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) AGENCY WITH RURAL RESPONSIBILITIES.—
The term ‘agency with rural responsibilities’ means
any executive agency (as defined in section 105 of
title 5, United States Code) that—
‘‘(A) implements Federal law targeted at
rural areas, including—
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‘‘(i) the Act of April 24, 1950 (com-
monly known as the ‘Granger-Thye Act’)
(64 Stat. 82, chapter 9);
‘‘(ii) the Intergovernmental Coopera-
tion Act of 1968 (82 Stat. 1098);
‘‘(iii) section 41742 of title 49, United
States Code;
‘‘(iv) the Rural Development Act of
1972 (86 Stat. 657);
‘‘(v) the Rural Development Policy Act
of 1980 (94 Stat. 1171);
‘‘(vi) the Rural Electrification Act of
1936 (7 U.S.C. 901 et seq.);
‘‘(vii) amendments made to section 334
of the Public Health Service Act (42 U.S.C.
254g) by the Rural Health Clinics Act of
1983 (97 Stat. 1345); and
‘‘(viii) the Rural Housing Amendments
of 1983 (97 Stat. 1240) and the amend-
ments made by the Rural Housing Amend-
ments of 1983 to title V of the Housing Act
of 1949 (42 U.S.C. 1471 et seq.); or
‘‘(B) administers a program that has a sig-
nificant impact on rural areas, including—
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‘‘(i) the Appalachian Regional Com-
mission;
‘‘(ii) the Department of Agriculture;
‘‘(iii) the Department of Commerce;
‘‘(iv) the Department of Defense;
‘‘(v) the Department of Education;
‘‘(vi) the Department of Energy;
‘‘(vii) the Department of Health and
Human Services;
‘‘(viii) the Department of Housing and
Urban Development;
‘‘(ix) the Department of the Interior;
‘‘(x) the Department of Justice;
‘‘(xi) the Department of Labor;
‘‘(xii) the Department of Transpor-
tation;
‘‘(xiii) the Department of the Treasury;
‘‘(xiv) the Department of Veterans Af-
fairs;
‘‘(xv) the Environmental Protection
Agency;
‘‘(xvi) the Federal Emergency Manage-
ment Administration;
‘‘(xvii) the Small Business Adminis-
tration;
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‘‘(xviii) the Social Security Adminis-
tration;
‘‘(xix) the Federal Reserve System;
‘‘(xx) the United States Postal Service;
‘‘(xxi) the Corporation for National
Service;
‘‘(xxii) the National Endowment for
the Arts and the National Endowment for
the Humanities; and
‘‘(xxiii) other agencies, commissions,
and corporations.
‘‘(2) COORDINATING COMMITTEE.—The term ‘Co-
ordinating Committee’ means the National Rural De-
velopment Coordinating Committee established by
subsection (c).
‘‘(3) PARTNERSHIP.—The term ‘Partnership’
means the National Rural Development Partnership
continued by subsection (b).
‘‘(4) STATE RURAL DEVELOPMENT COUNCIL.—
The term ‘State rural development council’ means a
State rural development council that meets the re-
quirements of subsection (d).
‘‘(b) PARTNERSHIP.—
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‘‘(1) IN GENERAL.—The Secretary shall continue
the National Rural Development Partnership com-
posed of—
‘‘(A) the Coordinating Committee; and
‘‘(B) State rural development councils.
‘‘(2) PURPOSES.—The purposes of the Partner-
ship are—
‘‘(A) to empower and build the capacity of
States and rural communities within States to
design unique responses to their own special
rural development needs, with local determina-
tions of progress and selection of projects and ac-
tivities;
‘‘(B) to encourage participants to be flexible
and innovative in establishing new partnerships
and trying fresh, new approaches to rural devel-
opment issues, with responses to rural develop-
ment that use different approaches to fit different
situations; and
‘‘(C) to encourage all partners in the Part-
nership (Federal, State, local, and tribal govern-
ments, the private sector, and nonprofit organi-
zations) to be fully engaged and share equally in
decisions.
‘‘(3) GOVERNING PANEL.—
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‘‘(A) IN GENERAL.—A panel consisting of
representatives of the Coordinating Committee
and State rural development councils shall be es-
tablished to lead and coordinate the strategic op-
eration, policies, and practices of the Partner-
ship.
‘‘(B) ANNUAL
REPORTS.—In conjunction
with the Coordinating Committee and State
rural development councils, the panel shall pre-
pare and submit to Congress an annual report
on the activities of the Partnership.
‘‘(4) ROLE OF FEDERAL GOVERNMENT.—The role
of the Federal Government in the Partnership shall be
that of a partner and facilitator, with Federal agen-
cies authorized—
‘‘(A) to cooperate with States to implement
the Partnership;
‘‘(B) to provide States with the technical
and administrative support necessary to plan
and implement tailored rural development strat-
egies to meet local needs;
‘‘(C) to ensure that the head of each agency
referred to in subsection (a)(1)(B) designates a
senior-level agency official to represent the agen-
cy on the Coordinating Committee and directs
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appropriate field staff to participate fully with
the State rural development council within the
jurisdiction of the field staff; and
‘‘(D) to enter into cooperative agreements
with, and to provide grants and other assistance
to, State rural development councils.
‘‘(5) ROLE OF PRIVATE AND NONPROFIT SECTOR
ORGANIZATIONS.—Private and nonprofit sector orga-
nizations are encouraged—
‘‘(A) to act as full partners in the Partner-
ship and State rural development councils; and
‘‘(B) to cooperate with participating gov-
ernment organizations in developing innovative
approaches to the solution of rural development
problems.
‘‘(c) NATIONAL RURAL DEVELOPMENT COORDINATING
COMMITTEE.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a National Rural Development Coordinating
Committee.
‘‘(2) COMPOSITION.—The Coordinating Com-
mittee shall be composed of—
‘‘(A) 1 representative of each agency with
rural responsibilities that elects to participate in
the Coordinating Committee; and
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‘‘(B) representatives, approved by the Sec-
retary, of—
‘‘(i) national associations of State, re-
gional, local, and tribal governments and
intergovernmental and multijurisdictional
agencies and organizations;
‘‘(ii) national public interest groups;
‘‘(iii) other national nonprofit organi-
zations that elect to participate in the ac-
tivities of the Coordinating Committee; and
‘‘(iv) the private sector.
‘‘(3) DUTIES.—The Coordinating Committee
shall—
‘‘(A) provide support for the work of the
State rural development councils;
‘‘(B) facilitate coordination among Federal
programs and activities, and with State, local,
tribal, and private programs and activities, af-
fecting rural development;
‘‘(C) enhance the effectiveness, responsive-
ness, and delivery of Federal programs in rural
areas;
‘‘(D) gather and provide to Federal authori-
ties information and input for the development
and implementation of Federal programs im-
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pacting rural economic and community develop-
ment;
‘‘(E) notwithstanding any other provision
of law, review and comment on policies, regula-
tions, and proposed legislation that affect or
would affect rural areas;
‘‘(F) provide technical assistance to State
rural development councils for the implementa-
tion of Federal programs;
‘‘(G) notwithstanding any other provision
of law, develop and facilitate strategies to reduce
or eliminate administrative and regulatory im-
pediments; and
‘‘(H) require each State receiving funds
under this section to submit an annual report on
the use of the funds by the State, including a de-
scription of strategic plans, goals, performance
measures, and outcomes for the State rural devel-
opment council of the State.
‘‘(4) ELECTION NOT TO PARTICIPATE.—An agen-
cy with rural responsibilities that elects not to par-
ticipate in the Partnership and the Coordinating
Committee shall submit to Congress a report that
describes—
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‘‘(A) how the programmatic responsibilities
of the Federal agency that target or have an im-
pact on rural areas are better achieved without
participation by the agency in the Partnership;
and
‘‘(B) a more effective means of partnership-
building and collaboration to achieve the pro-
grammatic responsibilities of the agency.
‘‘(d) STATE RURAL DEVELOPMENT COUNCILS.—
‘‘(1) ESTABLISHMENT.—Notwithstanding chap-
ter 63 of title 31, United States Code, each State may
elect to participate in the Partnership by entering
into an agreement with the Secretary to establish a
State rural development council.
‘‘(2) STATE DIVERSITY.—Each State rural devel-
opment council shall—
‘‘(A) have a nonpartisan membership that
is broad and representative of the economic, so-
cial, and political diversity of the State; and
‘‘(B) carry out programs and activities in
a manner that reflects the diversity of the State.
‘‘(3) DUTIES.—A State rural development coun-
cil shall—
‘‘(A) facilitate collaboration among Federal,
State, local, and tribal governments and the pri-
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vate and nonprofit sectors in the planning and
implementation of programs and policies that
target or have an impact on rural areas of the
State;
‘‘(B) enhance the effectiveness, responsive-
ness, and delivery of Federal and State programs
in rural areas of the State;
‘‘(C) gather and provide to the Coordi-
nating Committee and other appropriate organi-
zations information on the condition of rural
areas in the State;
‘‘(D) monitor and report on policies and
programs that address, or fail to address, the
needs of the rural areas of the State;
‘‘(E) provide comments to the Coordinating
Committee and other appropriate organizations
on policies, regulations, and proposed legislation
that affect or would affect the rural areas of the
State;
‘‘(F) notwithstanding any other provision of
law, in conjunction with the Coordinating Com-
mittee, facilitate the development of strategies to
reduce or eliminate conflicting or duplicative ad-
ministrative or regulatory requirements of Fed-
eral, State, local, and tribal governments;
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‘‘(5) COMMENTS
OR
RECOMMENDATIONS.—A
State rural development council may provide com-
ments and recommendations to an agency with rural
responsibilities related to the activities of the State
rural development council within the State.
‘‘(6) ACTIONS OF STATE RURAL DEVELOPMENT
COUNCIL MEMBERS.—When carrying out a program
or activity authorized by a State rural development
council or this subtitle, a member of the council shall
be regarded as a full-time employee of the Federal
Government for purposes of chapter 171 of title 28,
United States Code, and the Federal Advisory Com-
mittee Act (5 U.S.C. App.).
‘‘(7) FEDERAL PARTICIPATION IN STATE RURAL
DEVELOPMENT COUNCILS.—
‘‘(A) IN GENERAL.—The State Director for
Rural Development of a State, other employees of
the Department of Agriculture, and employees of
other Federal agencies that elect to participate in
the Partnership shall fully participate in the
governance and operations of State rural devel-
opment councils on an equal basis with other
members of the State rural development councils.
‘‘(B) CONFLICTS.—A Federal employee who
participates in a State rural development coun-
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cil shall not participate in the making of any
council decision if the agency represented by the
Federal employee has any financial or other in-
terest in the outcome of the decision.
‘‘(C) FEDERAL
GUIDANCE.—The Office of
Government Ethics, in consultation with the At-
torney General, shall issue guidance to all Fed-
eral employees that participate in State rural
development councils that describes specific deci-
sions that—
‘‘(i) would constitute a conflict of in-
terest for the Federal employee; and
‘‘(ii) from which the Federal employee
must recuse himself or herself.
‘‘(e) ADMINISTRATIVE SUPPORT OF THE PARTNER-
SHIP.—
‘‘(1) DETAIL OF EMPLOYEES.—
‘‘(A) IN GENERAL.—In order to provide ex-
perience in intergovernmental collaboration, the
head of an agency with rural responsibilities
that elects to participate in the Partnership
may, and is encouraged to, detail an employee of
the agency with rural responsibilities to the
Partnership without reimbursement for a period
of up to 12 months.
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‘‘(B) CIVIL
SERVICE
STATUS.—The detail
shall be without interruption or loss of civil serv-
ice status or privilege.
‘‘(2) ADDITIONAL SUPPORT.—The Secretary shall
provide for any additional support staff to the Part-
nership as the Secretary determines to be necessary to
carry out the duties of the Partnership.
‘‘(f) FUNDING.—
‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—There are authorized to
be appropriated such sums as are necessary to
carry out this section.
‘‘(B) AMOUNT OF FINANCIAL ASSISTANCE.—
In providing financial assistance to State rural
development councils, the Secretary and heads of
other Federal agencies shall provide assistance
that, to the maximum extent practicable, is—
‘‘(i) uniform in amount; and
‘‘(ii) targeted to newly created State
rural development councils.
‘‘(C) 
FEDERAL
SHARE.—The 
Secretary
shall develop a plan to decrease, over time, the
Federal share of the cost of the core operations of
State rural development councils.
‘‘(2) FEDERAL AGENCIES.—
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‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law limiting the ability of an
agency to provide funds to the Partnership with
other agencies, in order to carry out the purposes
described in subsection (b)(2), the Partnership
shall be eligible to receive grants, gifts, contribu-
tions, or technical assistance from, or enter into
contracts with, any Federal agency.
‘‘(B) ASSISTANCE.—Federal agencies are
encouraged to use funds made available for pro-
grams that target or have an impact on rural
areas to provide assistance to, and enter into
contracts with, the Partnership, as described in
subparagraph (A).
‘‘(3) CONTRIBUTIONS.—The Partnership may ac-
cept private contributions.
‘‘(4) FEDERAL FINANCIAL SUPPORT FOR STATE
RURAL
DEVELOPMENT
COUNCILS.—Notwithstanding
any other provision of law, a Federal agency may use
funds made available under paragraph (1) or (2) to
enter into a cooperative agreement, contract, or other
agreement with a State rural development council to
support the core operations of the State rural develop-
ment council, regardless of the legal form of organiza-
tion of the State rural development council.
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‘‘(g) MATCHING REQUIREMENTS FOR STATE RURAL
DEVELOPMENT COUNCILS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State rural development council shall
provide matching funds, or in-kind goods or services,
to support the activities of the State rural develop-
ment council in an amount that is not less than 33
percent of the amount of Federal funds received under
an agreement under subsection (d)(1).
‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT
FOR CERTAIN FEDERAL FUNDS.—Paragraph (1) shall
not apply to funds, grants, funds provided under con-
tracts or cooperative agreements, gifts, contributions,
or technical assistance received by a State rural devel-
opment council from a Federal agency that are
used—
‘‘(A) to support 1 or more specific program
or project activities; or
‘‘(B) to reimburse the State rural develop-
ment council for services provided to the Federal
agency providing the funds, grants, funds pro-
vided under contracts or cooperative agreements,
gifts, contributions, or technical assistance.
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‘‘(h) TERMINATION.—The authority provided under
this section shall terminate on the date that is 5 years after
the date of enactment of this section.’’.
Subtitle C—Consolidated Farm and
Rural Development Act
SEC. 621. WATER OR WASTE DISPOSAL GRANTS.
Section 306(a)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(2)) is amended—
(1) by striking ‘‘(2) The’’ and inserting the fol-
lowing:
‘‘(2) WATER, WASTE
DISPOSAL, AND
WASTE-
WATER FACILITY GRANTS.—
‘‘(A) AUTHORITY.—
‘‘(i) IN GENERAL.—The’’;
(2) by striking ‘‘$590,000,000’’ and inserting
‘‘$1,500,000,000’’;
(3) by striking ‘‘The amount’’ and inserting the
following:
‘‘(ii) AMOUNT.—The amount’’;
(4) by striking ‘‘paragraph’’ and in-
serting ‘‘subparagraph’’;
(5) by striking ‘‘The Secretary shall’’
and inserting the following:
‘‘(iii) GRANT
RATE.—The Secretary
shall’’; and
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(6) by adding at the end the following:
‘‘(B) REVOLVING
FUNDS
FOR
FINANCING
WATER AND WASTEWATER PROJECTS.—
‘‘(i) IN GENERAL.—The Secretary may
make grants to qualified private, nonprofit
entities to capitalize revolving funds for the
purpose of providing financing to eligible
entities for—
‘‘(I) predevelopment costs associ-
ated with proposed water and waste-
water projects or with existing water
and wastewater systems; and
‘‘(II) short-term costs incurred for
replacement equipment, small-scale ex-
tension services, or other small capital
projects that are not part of the regular
operations and maintenance activities
of existing water and wastewater sys-
tems.
‘‘(ii) ELIGIBLE ENTITIES.—To be eligi-
ble to obtain financing from a revolving
fund under clause (i), an eligible entity
shall be eligible to obtain a loan, loan guar-
antee, or grant under paragraph (1) or this
paragraph.
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‘‘(iii) MAXIMUM AMOUNT OF FINANC-
ING.—The amount of financing made to an
eligible entity under this subparagraph
shall not exceed—
‘‘(I) $100,000 for costs described
in clause (i)(I); and
‘‘(II) $100,000 for costs described
in clause (i)(II).
‘‘(iv) TERM.—The term of financing
provided to an eligible entity under this
subparagraph shall not exceed 10 years.
‘‘(v) ADMINISTRATION.—The Secretary
shall limit the amount of grant funds that
may be used by a grant recipient for ad-
ministrative costs incurred under this sub-
paragraph.
‘‘(vi) ANNUAL
REPORT.—A nonprofit
entity receiving a grant under this subpara-
graph shall submit an annual report to the
Secretary that describes the number and
size of communities served and the type of
financing provided.
‘‘(vii) AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appro-
priated to carry out this subparagraph
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$30,000,000 for each of fiscal years 2002
through 2006.’’.
SEC. 622. RURAL BUSINESS OPPORTUNITY GRANTS.
Section 306(a)(11)(D) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is
amended—
(1) by striking ‘‘$7,500,000’’ and inserting
‘‘$15,000,000’’; and
(2) by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 623. RURAL WATER AND WASTEWATER CIRCUIT RIDER
PROGRAM.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended by added
at the end the following:
‘‘(22) RURAL WATER AND WASTEWATER CIRCUIT
RIDER PROGRAM.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a national rural water and wastewater
circuit rider program that is based on the rural
water circuit rider program of the National
Rural Water Association that (as of the date of
enactment of this paragraph) receives funding
from the Secretary, acting through the Rural
Utilities Service.
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‘‘(B) RELATIONSHIP
TO
EXISTING
PRO-
GRAM.—The program established under subpara-
graph (A) shall not affect the authority of the
Secretary to carry out the circuit rider program
for which funds are made available under the
heading ‘‘RURAL
COMMUNITY
ADVANCEMENT
PROGRAM’’ of title III of the Agriculture, Rural
Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2002.
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $15,000,000 for each
of fiscal years 2003 through 2006.’’.
SEC. 624. MULTIJURISDICTIONAL REGIONAL PLANNING OR-
GANIZATIONS.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
623) is amended by added at the end the following:
‘‘(23) MULTIJURISDICTIONAL
REGIONAL
PLAN-
NING ORGANIZATIONS.—
‘‘(A) GRANTS.—The Secretary shall provide
grants to multijurisdictional regional planning
and development organizations to pay the Fed-
eral share of the cost of providing assistance to
local governments to improve the infrastructure,
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services, and business development capabilities of
local governments and local economic develop-
ment organizations.
‘‘(B) PRIORITY.—In determining which or-
ganizations will receive a grant under this para-
graph, the Secretary shall provide a priority to
an organization that—
‘‘(i) serves a rural area that, during
the most recent 5-year period—
‘‘(I) had a net out-migration of
inhabitants, or other population loss,
from the rural area that equals or ex-
ceeds 5 percent of the population of the
rural area; or
‘‘(II) had a median household in-
come that is less than the nonmetro-
politan median household income of
the applicable State; and
‘‘(ii) has a history of providing sub-
stantive assistance to local governments and
economic development organizations.
‘‘(C) FEDERAL SHARE.—A grant provided
under this paragraph shall be for not more than
75 percent of the cost of providing assistance de-
scribed in subparagraph (A).
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‘‘(D) MAXIMUM AMOUNT OF GRANTS.—The
amount of a grant provided to an organization
under this paragraph shall not exceed $100,000.
‘‘(E) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $30,000,000 for each
of fiscal years 2003 through 2006.’’.
SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHAR-
ING EXPERTISE.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
624) is amended by added at the end the following:
‘‘(24) CERTIFIED
NONPROFIT
ORGANIZATIONS
SHARING EXPERTISE.—
‘‘(A) CERTIFIED ORGANIZATIONS.—
‘‘(i) IN GENERAL.—To be certified by
the Secretary to provide technical assistance
in 1 or more rural development fields, an
organization shall—
‘‘(I) be a nonprofit organization
(which may include an institution of
higher education) with experience in
providing technical assistance in the
applicable rural development field;
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‘‘(II) develop a plan, approved by
the Secretary, describing the manner
in which grant funds will be used and
the source of non-Federal funds; and
‘‘(III) meet such other criteria as
the Secretary may establish, based on
the needs of eligible entities for the
technical assistance.
‘‘(iii) LIST.—The Secretary shall make
available to the public a list of certified or-
ganizations in each area that the Secretary
determines have substantial experience in
providing the assistance described in sub-
paragraph (B).
‘‘(B) GRANTS.—The Secretary may provide
grants to certified organizations to pay for costs
of providing technical assistance to local govern-
ments and nonprofit entities to improve the in-
frastructure, services, and business development
capabilities of local governments and local eco-
nomic development organizations.
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $20,000,000 for each
of fiscal years 2003 through 2006.’’.
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SEC. 626. LOAN GUARANTEES FOR CERTAIN RURAL DEVEL-
OPMENT LOANS.
(a) LOAN GUARANTEES FOR WATER, WASTEWATER,
AND ESSENTIAL COMMUNITY FACILITIES LOANS.—Section
306(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1925(a)) (as amended by section 625) is
amended by adding at the end the following:
‘‘(25) LOAN GUARANTEES FOR WATER, WASTE-
WATER, 
AND
ESSENTIAL
COMMUNITY
FACILITIES
LOANS.—
‘‘(A) IN
GENERAL.—The Secretary may
guarantee under this title a loan made to finance
a community facility or water or waste facility
project, including a loan financed by the net
proceeds 
of 
a 
bond 
described 
in 
section
144(a)(12)(B)(ii) of the Internal Revenue Code
of 1986.
‘‘(B) REQUIREMENTS.—To be eligible for a
loan guarantee under subparagraph (A), an in-
dividual or entity offering to purchase the loan
must demonstrate to the Secretary that the per-
son has—
‘‘(i) the capabilities and resources nec-
essary to service the loan in a manner that
ensures the continued performance of the
loan, as determined by the Secretary; and
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‘‘(ii) the ability to generate capital to
provide borrowers of the loan with the addi-
tional credit necessary to properly service
the loan.’’.
(b) LOAN GUARANTEES FOR CERTAIN LOANS.—Sec-
tion 310B of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1932) is amended by adding at the end
the following:
‘‘(h) LOAN GUARANTEE FOR CERTAIN LOANS.—The
Secretary may guarantee loans made in subsection (a) to
finance the issuance of bonds for the projects described in
section 306(a)(25).’’.
SEC. 627. RURAL FIREFIGHTERS AND EMERGENCY PER-
SONNEL GRANT PROGRAM.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
626(a)) is amended by adding at the end the following:
‘‘(26) RURAL
FIREFIGHTERS
AND
EMERGENCY
MEDICAL PERSONNEL GRANT PROGRAM.—
‘‘(A) IN
GENERAL.—The Secretary may
make grants to units of general local government
and Indian tribes (as defined in section 4 of the
Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450b)) to pay the cost of
training firefighters and emergency medical per-
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sonnel in firefighting, emergency medical prac-
tices, and responding to hazardous materials and
bioagents in rural areas.
‘‘(B) USE OF FUNDS.—
‘‘(i) SCHOLARSHIPS.—
‘‘(I) IN GENERAL.—Not less than
60 percent of the amounts made avail-
able for competitively awarded grants
under this paragraph shall be used to
provide grants to fund partial scholar-
ships for training of individuals at
training centers approved by the Sec-
retary.
‘‘(II) 
PRIORITY.—In 
awarding
grants under this clause, the Secretary
shall give priority to grant applicants
with relatively low transportation costs
considering the location of the grant
applicant and the proposed location of
the training.
‘‘(ii) GRANTS
FOR
TRAINING
CEN-
TERS.—
‘‘(I) EXISTING CENTERS.—
‘‘(aa) IN GENERAL.—A grant
under subparagraph (A) may be
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used to provide financial assist-
ance to State and regional centers
that provide training for fire-
fighters and emergency medical
personnel for improvements to the
training facility, equipment, cur-
ricula, and personnel.
‘‘(bb) 
LIMITATION.—Not
more than $2,000,000 shall be
provided to any single training
center for any fiscal year under
this subclause.
‘‘(II) ESTABLISHMENT
OF
NEW
CENTERS.—
‘‘(aa) IN GENERAL.—A grant
under subparagraph (A) may be
used to provide the Federal share
of the costs of establishing a re-
gional training center for fire-
fighters and emergency medical
personnel.
‘‘(bb) FEDERAL SHARE.—The
amount of a grant under this sub-
clause for a training center shall
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not exceed 50 percent of the cost of
establishing the training center.
‘‘(C) FUNDING.—
‘‘(i) IN GENERAL.—Out of any funds
in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer
to the Secretary of Agriculture to carry out
this paragraph—
‘‘(I) not later than 30 days after
the date of enactment of this Act,
$10,000,000; and
‘‘(II) on October 1, 2002, and
each October 1 thereafter through Octo-
ber 1, 2005, $30,000,000.
‘‘(ii) RECEIPT AND ACCEPTANCE.—The
Secretary shall be entitled to receive, shall
accept, and shall use to carry out this sec-
tion the funds transferred under clause (i),
without further appropriation.
‘‘(iii) 
AVAILABILITY
OF
FUNDS.—
Funds transferred under clause (i) shall re-
main available until expended.’’.
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SEC. 628. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL
COMMUNITY FACILITIES.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
627) is amended by adding at the end the following:
‘‘(27) TRIBAL COLLEGE AND UNIVERSITY ESSEN-
TIAL COMMUNITY FACILITIES.—
‘‘(A) IN
GENERAL.—The Secretary may
make grants to tribal colleges and universities
(as defined in section 316 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1059c)) to provide
the Federal share of the cost of developing spe-
cific tribal college or university essential commu-
nity facilities in rural areas.
‘‘(B) FEDERAL SHARE.—
‘‘(i) IN GENERAL.—Except as provided
in clauses (ii) and (iii), the Secretary shall,
by regulation, establish the maximum per-
centage of the cost of the facility that may
be covered by a grant under this paragraph.
‘‘(ii) MAXIMUM AMOUNT.—The amount
of a grant provided under this paragraph
for a facility shall not exceed 75 percent of
the cost of developing the facility.
‘‘(iii) GRADUATED
SCALE.—The Sec-
retary shall provide for a graduated scale of
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the percentages of the cost covered by a
grant made under this paragraph, with
higher percentages for facilities in commu-
nities that have lower community popu-
lation and income levels, as determined by
the Secretary.
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $10,000,000 for each
of fiscal years 2003 through 2006.’’.
SEC. 629. EMERGENCY COMMUNITY WATER ASSISTANCE
GRANT PROGRAM.
Section 306A(i) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926a(i)) is amended by strik-
ing ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 630. WATER AND WASTE FACILITY GRANTS FOR NA-
TIVE AMERICAN TRIBES.
Section 306C of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1926c(e)) is amended by striking
subsection (e) and inserting the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
there is authorized to be appropriated—
‘‘(A) 
for 
grants 
under 
this 
section,
$30,000,000 for each fiscal year;
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‘‘(B) 
for 
loans 
under 
this 
section,
$30,000,000 for each fiscal year; and
‘‘(C) for grants under this section to benefit
Indian tribes (as defined in section 4 of the In-
dian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b)), $20,000,000 for each
fiscal year.
‘‘(2) EXCEPTION.—An entity eligible to receive
funding through a grant made under section 306D
shall not be eligible for a grant from funds made
available under subparagraph (1)(C).’’.
SEC. 631. WATER SYSTEMS FOR RURAL AND NATIVE VIL-
LAGES IN ALASKA.
Section 306D(d)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended
by striking ‘‘and 2002’’ and inserting ‘‘through 2006’’.
SEC. 632. RURAL BUSINESS ENTERPRISE GRANTS.
Section 310B(c)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(c)(1)) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(A) GRANTS.—The Secretary’’; and
(2) by adding at the end the following:
‘‘(B) SMALL AND EMERGING PRIVATE BUSI-
NESS ENTERPRISES.—
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‘‘(i) IN GENERAL.—For the purpose of
subparagraph (A), a small and emerging
private business enterprise shall include (re-
gardless of the number of employees or oper-
ating capital of the enterprise) an eligible
nonprofit entity, or other tax exempt orga-
nization, with a principal office in an area
that is located—
‘‘(I) on land of an existing or
former Native American reservation;
and
‘‘(II) in a city, town, or unincor-
porated area that has a population of
no more than 5,000 inhabitants.
‘‘(ii) USE OF GRANT.—An eligible non-
profit entity, or other tax exempt organiza-
tion, described in clause (i) may use assist-
ance provided under this paragraph to cre-
ate, expand, or operate value-added proc-
essing in an area described in clause (i) in
connection with production agriculture.
‘‘(iii) PRIORITY.—In making grants
under this paragraph, the Secretary shall
give priority to grants that will be used to
provide assistance to eligible nonprofit enti-
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ties and other tax exempt organizations de-
scribed in clause (i).’’.
SEC. 633. RURAL COOPERATIVE DEVELOPMENT GRANTS.
Section 310B(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(e)) is amended—
(1) in paragraph (5)(F), before the period at the
end the following: ‘‘, except that the Secretary shall
not require non-Federal financial support in an
amount that is greater than 5 percent in the case of
a 1994 institution (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of
1994 (7 U.S.C. 301 note; Public Law 103–382))’’;
and
(2) in paragraph (9), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 634. GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(f)) is amended by adding
at the end the following:
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $5,000,000 for each of fiscal years
2002 through 2006.’’.
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SEC. 635. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.
Section 3l0B of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1932) is amended by striking sub-
section (g) and inserting the following:
‘‘(g) BUSINESS AND INDUSTRY DIRECT AND GUARAN-
TEED LOANS.—
‘‘(1) LOAN GUARANTEES FOR THE PURCHASE OF
COOPERATIVE STOCK.—
‘‘(A) 
NEW
AND
EXPANDING
COOPERA-
TIVES.—
‘‘(i) IN GENERAL.—The Secretary may
guarantee a loan under subsection (a) to
farmers, ranchers, or cooperatives for the
purpose of purchasing start-up capital stock
for the expansion or creation of a coopera-
tive venture that will process agricultural
commodities or otherwise process value-
added agricultural products.
‘‘(ii) FINANCIAL CONDITION.—In deter-
mining the appropriateness of a loan guar-
antee 
under 
this 
subparagraph, 
the
Secretary—
‘‘(I) shall fully review the feasi-
bility and other relevant aspects of the
cooperative venture to be established;
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‘‘(II) may not require a review of
the financial condition or statements of
any individual farmer or rancher in-
volved in the cooperative, other than
the applicant for a guarantee under
this subparagraph; and
‘‘(III) shall base any guarantee, to
the maximum extent practicable, on
the merits of the cooperative venture to
be established.
‘‘(iii) COLLATERAL.—As a condition of
making a loan guarantee under this sub-
paragraph, the Secretary may not require
additional collateral by a farmer or ranch-
er, other than stock purchased or issued
pursuant to the loan and guarantee of the
loan.
‘‘(iv) ELIGIBILITY.—To be eligible for
a loan guarantee under this subparagraph,
a farmer or rancher must produce the agri-
cultural commodity that will be processed
by the cooperative.
‘‘(v) PROCESSING CONTRACTS DURING
INITIAL
PERIOD.—The 
cooperative, 
for
which a farmer or rancher receives a guar-
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antee to purchase stock under this subpara-
graph, may contract for services to process
agricultural commodities, or otherwise proc-
ess value-added agricultural products, dur-
ing the 5-year period beginning on the date
of the startup of the cooperative in order to
provide adequate time for the planning and
construction of the processing facility of the
cooperative.
‘‘(B) EXISTING
COOPERATIVES.—The Sec-
retary may guarantee a loan under subsection
(a) to a farmer or rancher to join a cooperative
in order to sell the agricultural commodities or
products produced by the farmer or rancher.
‘‘(C) FINANCIAL INFORMATION.—Financial
information required by the Secretary from a
farmer or rancher as a condition of making a
loan guarantee under this paragraph shall be
provided in the manner generally required by
commercial agricultural lenders in the area.
‘‘(2) LOANS TO COOPERATIVES.—
‘‘(A) IN
GENERAL.—The Secretary may
make or guarantee a loan under subsection (a)
to a cooperative that is headquartered in a met-
ropolitan area if the loan is used for a project
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or venture described in subsection (a) that is lo-
cated in a rural area.
‘‘(B) REFINANCING.—A cooperative organi-
zation owned by farmers or ranchers that is eli-
gible for a business and industry loan under
made or guaranteed under subsection (a) shall be
eligible to refinance an existing loan with a
lender if—
‘‘(i) the cooperative organization—
‘‘(I) is current and performing
with respect to the existing loan; and
‘‘(II) is not, and has not been, in
payment default, or the collateral has
not been converted, with respect to the
existing loan; and
‘‘(ii) there is adequate security or full
collateral for the refinanced loan.
‘‘(3) BUSINESS AND INDUSTRY LOAN APPRAIS-
ALS.—The Secretary may require that any appraisal
made in connection with a business and industry
loan made or guaranteed under subsection (a) be con-
ducted by a specialized appraiser that uses standards
that are similar to standards used for similar pur-
poses in the private sector, as determined by the Sec-
retary.
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‘‘(4) FEES.—The Secretary may assess a 1-time
fee for any loan guaranteed under subsection (a) in
an amount that does not exceed 2 percent of the guar-
anteed principal portion of the loan.’’.
SEC. 636. VALUE-ADDED INTERMEDIARY RELENDING PRO-
GRAM.
Section 310B of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1932) (as amended by section
626(b)) is amended by adding at the end the following:
‘‘(i) VALUE-ADDED INTERMEDIARY RELENDING PRO-
GRAM.—
‘‘(1) IN GENERAL.—In accordance with this sub-
section, the Secretary shall make loans under the
terms and conditions of the intermediary relending
program established under section 1323(b)(2)(C) of
the Food Security Act of 1985 (7 U.S.C. 1932 note;
Public Law 99–198).
‘‘(2) LOANS.—Using funds made available to
carry out this subsection, the Secretary shall make
loans to eligible intermediaries to make loans to ulti-
mate recipients, under the terms and conditions of the
intermediary relending program, for projects to estab-
lish, enlarge, and operate enterprises that add value
to agricultural commodities and products of agricul-
tural commodities.
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‘‘(3) 
ELIGIBLE
INTERMEDIARIES.—Inter-
mediaries that are eligible to receive loans under
paragraph (2) shall include State agencies.
‘‘(4) PREFERENCE FOR BIOENERGY PROJECTS.—
In making loans using loan funds made available
under paragraph (2), an eligible intermediary shall
give preference to bioenergy projects in accordance
with regulations promulgated by the Secretary.
‘‘(5) COMPOSITION OF CAPITAL.—The capital for
a project carried out by an ultimate recipient and as-
sisted with loan funds made available under para-
graph (2) shall be comprised of—
‘‘(A) not more than 15 percent of the total
cost of a project; and
‘‘(B) not less than 50 percent of the equity
funds provided by agricultural producers.
‘‘(6) LOAN CONDITIONS.—
‘‘(A) TERMS OF LOANS.—A loan made to an
intermediary using loan funds made available
under paragraph (2) shall have a term of not to
exceed 30 years.
‘‘(B) INTEREST.—The interest rate on such
a loan shall be—
‘‘(i) in the case of each of the first 2
years of the loan period, 0 percent; and
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‘‘(ii) in the case of each of the remain-
ing years of the loan period, 2 percent.
‘‘(7) LIMITATIONS ON AMOUNT OF LOAN FUNDS
PROVIDED.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an intermediary or ultimate
recipient shall be eligible to receive not more
than $2,000,000 of the loan funds made available
under paragraph (2).
‘‘(B) STATE AGENCIES.—Subparagraph (A)
shall not apply in the case of a State agency
with respect to loan funds provided to the State
agency as an intermediary.
‘‘(8) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $15,000,000 for each of fiscal years
2003 through 2006.’’.
SEC. 637. USE OF RURAL DEVELOPMENT LOANS AND
GRANTS FOR OTHER PURPOSES.
Subtitle A of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1921 et seq.) (as amended by section
508) is amended by adding at the end the following:
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‘‘SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND
GRANTS FOR OTHER PURPOSES.
‘‘If, after making a loan or a grant described in section
381E(d), the Secretary determines that the circumstances
under which the loan or grant was made have sufficiently
changed to make the project or activity for which the loan
or grant was made available no longer appropriate, the Sec-
retary may allow the loan borrower or grant recipient to
use property (real and personal) purchased or improved
with the loan or grant funds, or proceeds from the sale of
property (real and personal) purchased with such funds, for
another project or activity that (as determined by the Sec-
retary)—
‘‘(1) will be carried out in the same area as the
original project or activity;
‘‘(2) meets the criteria for a loan or a grant de-
scribed in section 381E(d); and
‘‘(3) satisfies such additional requirements as are
established by the Secretary.’’.
SEC. 638. SIMPLIFIED APPLICATION FORMS FOR LOAN
GUARANTEES.
Section 333A of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1983a) (as amended by section
526) is amended by striking subsection (g) and inserting
the following:
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‘‘(g) SIMPLIFIED APPLICATION FORMS
FOR LOAN
GUARANTEES.—
‘‘(1) IN GENERAL.—The Secretary shall provide
to lenders a short, simplified application form for
guarantees under this title of—
‘‘(A) farmer program loans the principal
amount of which is $100,000 or less; and
‘‘(B) business and industry guaranteed
loans under section 310B(a)(1) the principal
amount of which is—
‘‘(i) in the case of a loan guarantee
made during fiscal year 2002 or 2003,
$400,000 or less; and
‘‘(ii) in the case of a loan guarantee
made during any subsequent fiscal year—
‘‘(I) $400,000 or less; or
‘‘(II) if the Secretary determines
that there is not a significant increased
risk of a default on the loan, $600,000
or less.
‘‘(2) WATER AND WASTE DISPOSAL GRANTS AND
LOANS.—The Secretary shall develop an application
process that accelerates, to the maximum extent prac-
ticable, the processing of applications for water and
waste disposal grants or direct or guaranteed loans
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under paragraph (1) or (2) of section 306(a) the
grant award amount or principal loan amount, re-
spectively, of which is $300,000 or less.
‘‘(3) ADMINISTRATION.—In developing an appli-
cation under this subsection, the Secretary shall—
‘‘(A) consult with commercial and coopera-
tive lenders; and
‘‘(B) ensure that—
‘‘(i) the form can be completed manu-
ally or electronically, at the option of the
lender;
‘‘(ii) the form minimizes the docu-
mentation required to accompany the form;
‘‘(iii) the cost of completing and proc-
essing the form is minimal; and
‘‘(iv) the form can be completed and
processed in an expeditious manner.’’.
SEC. 639. DEFINITION OF RURAL AND RURAL AREA.
(a) IN GENERAL.—Section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)) is
amended by adding at the end the following:
‘‘(13) RURAL AND RURAL AREA.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, the terms ‘rural’
and ‘rural area’ mean a city, town, or unincor-
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porated area that has a population of 50,000 in-
habitants or less, other than an urbanized area
immediately adjacent to a city, town, or unin-
corporated area that has a population in excess
of 50,000 inhabitants.
‘‘(B) WATER AND WASTE DISPOSAL GRANTS
AND DIRECT AND GUARANTEED LOANS.—For the
purpose of water and waste disposal grants and
direct and guaranteed loans provided under
paragraphs (1) and (2) of section 306(a), the
terms ‘rural’ and ‘rural area’ mean a city, town,
or unincorporated area that has a population of
no more than 10,000 inhabitants.
‘‘(C) COMMUNITY
FACILITY
LOANS
AND
GRANTS.—For the purpose of community facility
direct and guaranteed loans and grants under
paragraphs (1), (19), (20), and (21) of section
306(a), the terms ‘rural’ and ‘rural area’ mean
a city, town, or unincorporated area that has a
population of no more than 50,000 inhabitants.
‘‘(D) BUSINESS AND INDUSTRY DIRECT AND
GUARANTEED LOANS.—For the purpose of busi-
ness and industry direct and guaranteed loans
under section 310B(a)(1), the terms ‘rural’ and
‘rural area’ mean any area other than a city or
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town that has a population of greater than
50,000 inhabitants and the immediately adjacent
urbanized area of such city or town.
‘‘(E) 
MULTIJURISDICTIONAL
REGIONAL
PLANNING ORGANIZATIONS; NATIONAL RURAL DE-
VELOPMENT
PARTNERSHIP.—In 
sections
306(a)(23) and 377, the term ‘rural area’
means—
‘‘(i) all the territory of a State that is
not within the boundary of any standard
metropolitan statistical area; and
‘‘(ii) all territory within any standard
metropolitan statistical area within a cen-
sus tract having a population density of less
than 20 persons per square mile, as deter-
mined by the Secretary according to the
most recent census of the United States as
of any date.
‘‘(F) RURAL ENTREPRENEURS AND MICRO-
ENTERPRISE
ASSISTANCE
PROGRAM; NATIONAL
RURAL
COOPERATIVE
AND
BUSINESS
EQUITY
FUND; 
RURAL
BUSINESS
INVESTMENT
PRO-
GRAM.—In section 378 and subtitles G and H,
the term ‘rural area’ means an area that is
located—
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‘‘(i) outside a standard metropolitan
statistical area; or
‘‘(ii) within a community that has a
population of 50,000 inhabitants or less.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 306(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)) is amend-
ed by striking paragraph (7).
(2) Section 381A of the Consolidated Farm and
Rural 
Development 
Act 
(7 
U.S.C. 
2009) 
is
amended—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(3) Section 735 of the Agriculture, Rural Devel-
opment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999 (112 Stat. 2681–
29) is repealed.
SEC. 640. RURAL ENTREPRENEURS AND MICROENTERPRISE
ASSISTANCE PROGRAM.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (as amended by section 612) is amended by
adding at the end the following:
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‘‘SEC. 378. RURAL ENTREPRENEURS AND MICROENTER-
PRISE ASSISTANCE PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ECONOMICALLY
DISADVANTAGED
MICRO-
ENTREPRENEUR.—The term ‘economically disadvan-
taged microentrepreneur’ means an owner, majority
owner, or developer of a microenterprise that has the
ability to compete in the private sector but has been
impaired due to diminished capital and credit oppor-
tunities, as compared to other microentrepreneurs in
the industry.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(3) INTERMEDIARY.—The term ‘intermediary’
means a private, nonprofit entity that provides
assistance—
‘‘(A) to a microenterprise development orga-
nization; or
‘‘(B) for a microenterprise development pro-
gram.
‘‘(4) LOW-INCOME INDIVIDUAL.—The term ‘low-
income individual’ means an individual with an in-
come (adjusted for family size) of not more than the
greater of—
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‘‘(A) 80 percent of median income of an
area; or
‘‘(B) 80 percent of the statewide nonmetro-
politan area median income.
‘‘(5) MICROCREDIT.—The term ‘microcredit’
means a business loan or loan guarantee of not more
than $35,000 provided to a rural entrepreneur.
‘‘(6) MICROENTERPISE.—The term ‘microenter-
prise’ means a sole proprietorship, joint enterprise,
limited liability company, partnership, corporation,
or cooperative that—
‘‘(A) has 5 or fewer employees; and
‘‘(B) is unable to obtain sufficient credit,
equity, or banking services elsewhere, as deter-
mined by the Secretary.
‘‘(7) MICROENTERPRISE DEVELOPMENT ORGANI-
ZATION.—
‘‘(A) IN GENERAL.—The term ‘microenter-
prise development organization’ means a non-
profit entity that provides training and tech-
nical assistance to rural entrepreneurs and ac-
cess to capital or another service described in
subsection (c) to rural entrepreneurs.
‘‘(B) INCLUSIONS.—The term ‘microenter-
prise development organization’ includes an or-
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ganization described in subparagraph (A) with a
demonstrated record of delivering services to eco-
nomically disadvantaged microentrepreneurs.
‘‘(8) MICROENTERPRISE
DEVELOPMENT
PRO-
GRAM.—The term ‘microenterprise development orga-
nization’ means a program administered by a organi-
zation serving a rural area.
‘‘(9) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means the owner, operator, or developer
of a microenterprise.
‘‘(10) PROGRAM.—The term ‘program’ means the
rural entrepreneur and microenterprise program es-
tablished under subsection (b)(1).
‘‘(11) QUALIFIED
ORGANIZATION.—The term
‘qualified organization’ means—
‘‘(A) a microenterprise development organi-
zation or microenterprise development program
that has a demonstrated record of delivering
microenterprise services to rural entrepreneurs,
as demonstrated by the development of an effec-
tive plan of action and the possession of nec-
essary resources to deliver microenterprise serv-
ices to rural entrepreneurs effectively, as deter-
mined by the Secretary;
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‘‘(B) an intermediary that has a dem-
onstrated record of delivery assistance to micro-
enterprise development organizations or micro-
enterprise development programs;
‘‘(C) a microenterprise development organi-
zation or microenterprise development program
that—
‘‘(i) serves rural entrepreneurs; and
‘‘(ii) enters into an agreement with a
local community, in conjunction with a
State or local government or Indian tribe,
to provide assistance described in subsection
(c);
‘‘(D) an Indian tribe, the tribal government
of which certifies to the Secretary that no micro-
enterprise development organization or micro-
enterprise development program exists under the
jurisdiction of the Indian tribe; or
‘‘(E) a group of 2 or more organizations or
Indian tribes described in subparagraph (A),
(B), (C), or (D) that agree to act jointly as a
qualified organization under this section.
‘‘(12) RURAL CAPACITY BUILDING SERVICE.—The
term ‘rural capacity building service’ means a service
provided to an organization that—
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‘‘(A) is, or is in the process of becoming, a
microenterprise development organization or
microenterprise development program; and
‘‘(B) serves rural areas for the purpose of
enhancing the ability of the organization to pro-
vide training, technical assistance, and other re-
lated services to rural entrepreneurs.
‘‘(13) RURAL ENTREPRENEUR.—The term ‘rural
entrepreneur’ means a microentrepreneur, or prospec-
tive microentrepreneur—
‘‘(A) the principal place of business of
which is in a rural area; and
‘‘(B) that is unable to obtain sufficient
training, technical assistance, or microcredit
elsewhere, as determined by the Secretary.
‘‘(14) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Rural
Business-Cooperative Service.
‘‘(15) TRAINING AND TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—The term ‘training and
technical assistance’ means assistance provided
to rural entrepreneurs to develop the skills the
rural entrepreneurs need to plan, market, and
manage their own business.
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‘‘(B) INCLUSIONS.—The term ‘training and
technical assistance’ includes assistance provided
for the purpose of—
‘‘(i) 
enhancing 
business 
planning,
marketing, management, or financial man-
agement skills; and
‘‘(ii) obtaining microcredit.
‘‘(16) TRIBAL GOVERNMENT.—The term ‘tribal
government’ means the governing body of an Indian
tribe.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—From amounts made avail-
able under subsection (h), the Secretary shall establish
a rural entrepreneur and microenterprise program.
‘‘(2) PURPOSE.—The purpose of the program
shall be to provide low- and moderate-income individ-
uals with—
‘‘(A) the skills necessary to establish new
small businesses in rural areas; and
‘‘(B) continuing technical assistance as the
individuals begin operating the small businesses.
‘‘(c) ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant under this section to a qualified organization
to—
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‘‘(A) provide training, technical assistance,
or microcredit to a rural entrepreneur;
‘‘(B) provide training, operational support,
or a rural capacity building service to a quali-
fied organization to assist the qualified organiza-
tion in developing microenterprise training,
technical assistance, and other related services;
‘‘(C) assist in researching and developing
the best practices in delivering training, tech-
nical assistance, and microcredit to rural entre-
preneurs; and
‘‘(D) to carry out such other projects and
activities as the Secretary determines are con-
sistent with the purposes of this section.
‘‘(2) ALLOCATION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), of the amount of funds
made available for a fiscal year to make grants
under this section, the Secretary shall ensure
that—
‘‘(i) not less than 75 percent of funds
are used to carry out activities described in
paragraph (1)(A); and
‘‘(ii) not more than 25 percent of the
funds are used to carry out activities de-
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scribed in subparagraphs (B) through (D)
of paragraph (1).
‘‘(B) LIMITATION ON GRANT AMOUNT.—No
single qualified organization may receive more
than 10 percent of the total funds that are made
available for a fiscal year to carry out this sec-
tion.
‘‘(C) 
ADMINISTRATIVE
EXPENSES.—Not
more than 15 percent of assistance received by a
qualified organization for a fiscal year under
this section may be used for administrative ex-
penses.
‘‘(d) SUBGRANTS.—Subject to such regulations as the
Secretary may promulgate, a qualified organization that
receives a grant under this section may use the grant to
provide assistance to other qualified organizations, such as
small or emerging qualified organizations.
‘‘(e) LOW-INCOME INDIVIDUALS.—The Secretary shall
ensure that not less than 50 percent of the grants made
under this section is used to benefit low-income individuals
identified by the Secretary, including individuals residing
on Indian reservations.
‘‘(f) DIVERSITY.—In making grants under this section,
the Secretary shall ensure, to the maximum extent prac-
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ticable, 
that 
grant 
recipients 
include 
qualified
organizations—
‘‘(1) of varying sizes; and
‘‘(2) that serve racially and ethnically diverse
populations.
‘‘(g) COST SHARING.—
‘‘(1) FEDERAL SHARE.—The Federal share of the
cost of a project carried out using funds from a grant
under this section shall be 75 percent.
‘‘(2) FORM OF NON-FEDERAL SHARE.—The non-
Federal share of the cost of a project described in
paragraph (1) may be provided—
‘‘(A) in cash (including through fees, grants
(including 
community 
development 
block
grants), and gifts); or
‘‘(B) in kind.
‘‘(h) FUNDING.—
‘‘(1) IN GENERAL.—Not later than 30 days after
the date of enactment of this Act, and on October 1,
2002, and each October 1 thereafter through October
1, 2005, out of any funds in the Treasury not other-
wise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out
this section $10,000,000, to remain available until ex-
pended.
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‘‘(2) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this section the funds transferred under
paragraph (1), without further appropriation.’’.
SEC. 641. RURAL SENIORS.
(a) INTERAGENCY COORDINATING COMMITTEE
FOR
RURAL SENIORS.—Subtitle D of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1981 et seq.) (as
amended by section 640) is amended by adding at the end
the following:
‘‘SEC. 379. INTERAGENCY COORDINATING COMMITTEE FOR
RURAL SENIORS.
‘‘(a) IN GENERAL.—The Secretary shall establish an
interagency coordinating committee (referred to in this sec-
tion as the ‘Committee’) to examine the special problems
of rural seniors.
‘‘(b) MEMBERSHIP.—The Committee shall be com-
prised of—
‘‘(1) the Undersecretary of Agriculture for Rural
Development, who shall serve as chairperson of the
Committee;
‘‘(2) 2 representatives of the Secretary of Health
and Human Services, of whom—
‘‘(A) 1 shall have expertise in the field of
health care; and
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‘‘(B) 1 shall have expertise in the field of
programs under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.);
‘‘(3) 1 representative of the Secretary of Housing
and Urban Development;
‘‘(4) 1 representative of the Secretary of the Inte-
rior;
‘‘(5) 1 representative of the Secretary of Trans-
portation; and
‘‘(6) representatives of such other Federal agen-
cies as the Secretary may designate.
‘‘(c) DUTIES.—The Committee shall—
‘‘(1) study health care, transportation, tech-
nology, housing, accessibility, and other areas of need
of rural seniors;
‘‘(2) identify successful examples of senior care
programs in rural communities that could serve as
models for other rural communities; and
‘‘(3) not later than 1 year after the date of enact-
ment of this section, submit to the Secretary, the
Committee on Agriculture of the House of Representa-
tives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate recommendations for legis-
lative and administrative action.
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‘‘(d) FUNDING.—Funds available to any Federal agen-
cy may be used to carry out interagency activities under
this section.’’.
(b) GRANTS FOR PROGRAMS FOR RURAL SENIORS.—
Subtitle D of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1981 et seq.) (as amended by subsection
(a)) is amended by adding at the end the following:
‘‘SEC. 379A. GRANTS FOR PROGRAMS FOR RURAL SENIORS.
‘‘(a) IN GENERAL.—The Secretary shall make grants
to nonprofit organizations (including cooperatives) to pay
the Federal share of the cost of programs that—
‘‘(1) provide facilities, equipment, and tech-
nology for seniors in a rural area; and
‘‘(2) may be replicated in other rural areas.
‘‘(b) FEDERAL SHARE.—The Federal share of a grant
under this section shall be not more than 20 percent of the
cost of a program described in subsection (a).
‘‘(c) LEVERAGING.—In selecting programs to receive
grants under section, the Secretary shall give priority to
proposals that leverage resources to meet multiple rural
community goals.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$25,000,000 for each of fiscal years 2003 through 2006.’’.
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(c) RESERVATION OF COMMUNITY FACILITIES PRO-
GRAM
FUNDS
FOR
SENIOR
FACILITIES.—Section
306(a)(19) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(a)(19)) is amended by adding at
the end the following:
‘‘(C) RESERVATION OF FUNDS FOR SENIOR
FACILITIES.—
‘‘(i) IN
GENERAL.—For each fiscal
year, not less than 12.5 percent of the funds
made available to carry out this paragraph
shall be reserved for grants to pay the Fed-
eral share of the cost of developing and con-
structing senior facilities, or carrying out
other projects that mainly benefit seniors, in
rural areas.
‘‘(ii) RELEASE.—Funds reserved under
clause (i) for a fiscal year shall be reserved
only until April 1 of the fiscal year.’’.
SEC. 642. CHILDREN’S DAY CARE FACILITIES.
Section 306(a)(19) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(19)) (as amend-
ed by section 641(c)) is amended by adding at the end the
following:
‘‘(D) RESERVATION OF FUNDS FOR CHIL-
DREN’S DAY CARE FACILITIES.—
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‘‘(i) IN
GENERAL.—For each fiscal
year, not less than 10 percent of the funds
made available to carry out this paragraph
shall be reserved for grants to pay the Fed-
eral share of the cost of developing and con-
structing day care facilities for children in
rural areas.
‘‘(ii) RELEASE.—Funds reserved under
clause (i) for a fiscal year shall be reserved
only until April 1 of the fiscal year.’’.
SEC. 643. RURAL TELEWORK.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1981 et seq.) (as amended by section
641(b)) is amended by adding at the end the following:
‘‘SEC. 379B. RURAL TELEWORK.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ORGANIZATION.—The term ‘eligi-
ble organization’ means a nonprofit entity, an edu-
cational institution, an Indian tribe (as defined in
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b)), or any other
organization that meets the requirements of this sec-
tion and such other requirements as are established by
the Secretary.
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‘‘(2) INSTITUTE.—The term ‘institute’ means a
regional rural telework institute established using a
grant under subsection (b).
‘‘(3) TELEWORK.—The term ‘telework’ means the
use of telecommunications to perform work functions
at a rural work center located outside the place of
business of an employer.
‘‘(b) RURAL TELEWORK INSTITUTE.—
‘‘(1) IN GENERAL.—The Secretary shall make a
grant to an eligible organization to pay the Federal
share of the cost of establishing and operating a na-
tional rural telework institute to carry out projects
described in paragraph (4).
‘‘(2) ELIGIBLE ORGANIZATIONS.—The Secretary
shall establish criteria that an organization shall
meet to be eligible to receive a grant under this sub-
section.
‘‘(3) DEADLINE FOR INITIAL GRANT.—Not later
than 1 year after the date on which funds are first
made available to carry out this subsection, the Sec-
retary shall make the initial grant under this sub-
section.
‘‘(4) PROJECTS.—The institute shall use grant
funds obtained under this subsection to carry out a
5-year project—
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‘‘(A) to serve as a clearinghouse for telework
research and development;
‘‘(B) to conduct outreach to rural commu-
nities and rural workers;
‘‘(C) to develop and share best practices in
rural telework throughout the United States;
‘‘(D) to develop innovative, market-driven
telework projects and joint ventures with the pri-
vate sector that employ workers in rural areas in
jobs that promote economic self-sufficiency;
‘‘(E) to share information about the design
and implementation of telework arrangements;
‘‘(F) to support private sector businesses
that are transitioning to telework;
‘‘(G) to support and assist telework projects
and individuals at the State and local level; and
‘‘(H) to perform such other functions as the
Secretary considers appropriate.
‘‘(5) NON-FEDERAL SHARE.—
‘‘(A) IN GENERAL.—As a condition of re-
ceiving a grant under this subsection, an eligible
organization shall agree to obtain, after the ap-
plication of the eligible organization has been
approved and notice of award has been issued,
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contributions from non-Federal sources that are
equal to—
‘‘(i) during each of the first, second,
and third years of a project, 50 percent of
the amount of the grant; and
‘‘(ii) during each of the fourth and
fifth years of the project, 100 percent of the
amount of the grant.
‘‘(B) 
INDIAN
TRIBES.—Notwithstanding
subparagraph (A), an Indian tribe may use Fed-
eral funds made available to the tribe for self-
governance to pay the non-Federal contributions
required under subparagraph (A).
‘‘(C) FORM.—The non-Federal contributions
required under subparagraph (A) may be in the
form of in-kind contributions, including office
equipment, office space, and services.
‘‘(c) TELEWORK GRANTS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
through (5), the Secretary shall make grants to eligi-
ble entities to pay the Federal share of the cost of—
‘‘(A) obtaining equipment and facilities to
establish or expand telework locations in rural
areas; and
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‘‘(B) operating telework locations in rural
areas.
‘‘(2) ELIGIBLE ORGANIZATIONS.—To be eligible
to receive a grant under this subsection, an eligible
entity shall—
‘‘(A) be a nonprofit organization or edu-
cational institution in a rural area; and
‘‘(B) submit to, and receive the approval of,
the Secretary of an application for the grant
that demonstrates that the eligible entity has
adequate resources and capabilities to establish
or expand a telework location in a rural area.
‘‘(3) NON-FEDERAL SHARE.—
‘‘(A) IN GENERAL.—As a condition of re-
ceiving a grant under this subsection, an eligible
organization shall agree to obtain, after the ap-
plication of the eligible organization has been
approved and notice of award has been issued,
contributions from non-Federal sources that are
equal to 50 percent of the amount of the grant.
‘‘(B) 
INDIAN
TRIBES.—Notwithstanding
subparagraph (A), an Indian tribe may use Fed-
eral funds made available to the tribe for self-
governance to pay the non-Federal contributions
required under subparagraph (A).
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‘‘(C) SOURCES.—The non-Federal contribu-
tions required under subparagraph (A)—
‘‘(i) may be in the form of in-kind con-
tributions, including office equipment, office
space, and services; and
‘‘(ii) may not be made from funds
made available for community development
block grants under title I of the Housing
and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
‘‘(4) DURATION.—The Secretary may not pro-
vide a grant under this subsection to establish, ex-
pand, or operate a telework location in a rural area
after the date that is 2 years after the establishment
of the telework location.
‘‘(5) MAXIMUM AMOUNT OF GRANT.—The amount
of a grant provided to an eligible entity under this
subsection shall not exceed $500,000.
‘‘(d) APPLICABILITY OF CERTAIN FEDERAL LAW.—An
entity that receives funds under this section shall be subject
to the provisions of Federal law (including regulations), ad-
ministered by the Secretary of Labor or the Equal Employ-
ment Opportunity Commission, that govern the responsibil-
ities of employers to employees.
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‘‘(e) REGULATIONS.—Not later than 180 days after the
date of enactment of this section, the Secretary shall pro-
mulgate regulations to carry out this section.
‘‘(f) AUTHORIZATION OF APPROPRIATION.—There is
authorized to be appropriated to carry out this section
$30,000,000 for each of fiscal years 2002 through 2006, of
which $5,000,000 shall be provided to establish an institute
under subsection (b).’’.
SEC. 644. HISTORIC BARN PRESERVATION.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1981 et seq.) (as amended by section
643) is amended by adding at the end the following:
‘‘SEC. 379C. HISTORIC BARN PRESERVATION.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BARN.—The term ‘barn’ means a building
(other than a dwelling) on a farm, ranch, or other ag-
ricultural operation for—
‘‘(A) housing animals;
‘‘(B) storing or processing crops;
‘‘(C) storing and maintaining agricultural
equipment; or
‘‘(D) serving an essential or useful purpose
related to agriculture on the adjacent land.
‘‘(2) ELIGIBLE APPLICANT.—The term ‘eligible
applicant’ means—
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‘‘(A) a State department of agriculture (or
a designee);
‘‘(B) a national or State nonprofit organi-
zation that—
‘‘(i) is exempt from tax under section
501(c)(3) of the Internal Revenue Code of
1986; and
‘‘(ii) has experience or expertise, as de-
termined by the Secretary, in the identifica-
tion, evaluation, rehabilitation, preserva-
tion, or protection of historic barns; and
‘‘(C) a State historic preservation office.
‘‘(3) HISTORIC BARN.—The term ‘historic barn’
means a barn that—
‘‘(A) is at least 50 years old;
‘‘(B) retains sufficient integrity of design,
materials, and construction to clearly identify
the barn as an agricultural building; and
‘‘(C) meets the criteria for listing on Na-
tional, State, or local registers or inventories of
historic structures.
‘‘(4) SECRETARY.—The term ‘Secretary’ means
the Secretary, acting through the Undersecretary of
Rural Development.
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‘‘(b) PROGRAM.—The Secretary shall establish a his-
toric barn preservation program—
‘‘(1) to assist States in developing a listing of
historic barns;
‘‘(2) to collect and disseminate information on
historic barns;
‘‘(3) to foster educational programs relating to
the history, construction techniques, rehabilitation,
and contribution to society of historic barns; and
‘‘(4) to sponsor and conduct research on—
‘‘(A) the history of barns; and
‘‘(B) best practices to protect and rehabili-
tate historic barns from the effects of decay, fire,
arson, and natural disasters.
‘‘(c) GRANTS.—
‘‘(1) IN
GENERAL.—The Secretary may make
grants to, or enter into contracts or cooperative agree-
ments with, eligible applicants to carry out an eligi-
ble project under paragraph (2).
‘‘(2) ELIGIBLE PROJECTS.—A grant under this
subsection may be made to an eligible entity for a
project—
‘‘(A) to rehabilitate or repair a historic
barn;
‘‘(B) to preserve a historic barn through—
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‘‘(i) the installation of a fire protection
system, including fireproofing or fire detec-
tion system and sprinklers; and
‘‘(ii) the installation of a system to
prevent vandalism; and
‘‘(C) to identify, document, and conduct re-
search on a historic barn to develop and evaluate
appropriate techniques or best practices for pro-
tecting historic barns.
‘‘(3) REQUIREMENTS.—An eligible applicant
that receives a grant for a project under this sub-
section shall comply with any standards established
by the Secretary of the Interior for historic preserva-
tion projects.
‘‘(d) FUNDING.—There is authorized to be appro-
priated to carry out this section, $25,000,000 for the period
of fiscal years 2002 through 2006, to remain available until
expended.’’.
SEC. 645. GRANTS FOR EMERGENCY WEATHER RADIO
TRANSMITTERS.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1981 et seq.) (as amended by section
644)) is amended by adding at the end the following:
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‘‘SEC. 379D. GRANTS FOR EMERGENCY WEATHER RADIO
TRANSMITTERS.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Administrator of the Rural Utilities Service, may make
grants to public and nonprofit entities for the Federal share
of the cost of acquiring radio transmitters to increase cov-
erage of rural areas by the emergency weather radio broad-
cast system of the National Oceanic and Atmospheric Ad-
ministration.
‘‘(b) ELIGIBILITY.—To be eligible for a grant under
this section, an applicant shall provide to the Secretary—
‘‘(1) a binding commitment from a tower owner
to place the transmitter on a tower; and
‘‘(2) a description of how the tower placement
will increase coverage of a rural area by the emer-
gency weather radio broadcast system of the National
Oceanic and Atmospheric Administration.
‘‘(c) FEDERAL SHARE.—A grant provided under this
section shall be not more than 75 percent of the cost of ac-
quiring a radio transmitter described in subsection (a).
‘‘(d) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section $2,000,000 for each of
fiscal years 2002 through 2006.’’.
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SEC. 646. GRANTS FOR TRAINING FARM WORKERS.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1981 et seq.) (as amended by section
645) is amended by adding at the end the following:
‘‘SEC. 379E. GRANTS FOR TRAINING FARM WORKERS.
‘‘(a) DEFINITION OF ELIGIBLE ORGANIZATION.—In
this section, the term ‘eligible organization’ means—
‘‘(1) a nonprofit organization; or
‘‘(2) a consortium of nonprofit organizations, ag-
ribusinesses, State and local governments, agricul-
tural labor organizations, farmer cooperatives, or
community-based organizations;
that has the ability to train farm workers.
‘‘(b) GRANTS.—The Secretary shall make grants to eli-
gible organizations to provide training to farm workers—
‘‘(1) on the use of technology in agriculture; and
‘‘(2) to develop the specialized skills necessary to
produce higher value crops.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 2002 through 2006.’’.
SEC. 647. DELTA REGIONAL AUTHORITY.
(a) SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.—
Section 382D of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2009aa–3) is amended to read as fol-
lows:
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‘‘SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
‘‘(a) FINDING.—Congress finds that certain States and
local communities of the region, including local develop-
ment districts, may be unable to take maximum advantage
of Federal grant programs for which the States and commu-
nities are eligible because—
‘‘(1) they lack the economic resources to provide
the required matching share; or
‘‘(2) there are insufficient funds available under
the applicable Federal law authorizing the Federal
grant program to meet pressing needs of the region.
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith-
standing any provision of law limiting the Federal share,
the areas eligible for assistance, or the authorizations of ap-
propriations, under any Federal grant program, and in ac-
cordance with subsection (c), the Authority, with the ap-
proval of the Federal cochairperson and with respect to a
project to be carried out in the region, may—
‘‘(1) increase the Federal share of the costs of a
project under any Federal grant program to not more
than 90 percent (except as provided in section
382F(b)); and
‘‘(2) use amounts made available to carry out
this subtitle to pay all or a portion of the increased
Federal share.
‘‘(c) CERTIFICATIONS.—
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‘‘(1) IN GENERAL.—In the case of any project for
which all or any portion of the basic Federal share
of the costs of the project is proposed to be paid under
this section, no Federal contribution shall be made
until the Federal official administering the Federal
law that authorizes the Federal grant program cer-
tifies that the project—
‘‘(A) meets (except as provided in subsection
(b)) the applicable requirements of the applicable
Federal grant program; and
‘‘(B) could be approved for Federal con-
tribution under the Federal grant program if
funds were available under the law for the
project.
‘‘(2) CERTIFICATION BY AUTHORITY.—
‘‘(A) IN GENERAL.—The certifications and
determinations required to be made by the Au-
thority for approval of projects under this Act in
accordance with section 382I—
‘‘(i) shall be controlling; and
‘‘(ii) shall be accepted by the Federal
agencies.
‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR-
PERSON.—In the case of any project described in
paragraph (1), any finding, report, certification,
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or documentation required to be submitted with
respect to the project to the head of the depart-
ment, agency, or instrumentality of the Federal
Government responsible for the administration of
the Federal grant program under which the
project is carried out shall be accepted by the
Federal cochairperson.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
382M(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009aa–12(a)) is amended by striking
‘‘2002’’ and inserting ‘‘2006’’.
(c) TERMINATION OF AUTHORITY.—Section 382N of
the Consolidated Farm and Rural Development Act (7
U.S.C. 2009aa–13) is amended by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
(d) DELTA REGION AGRICULTURAL ECONOMIC DEVEL-
OPMENT.—Subtitle D of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1981 et seq.) (as amended by
section 646) is amended by adding at the end the following:
‘‘SEC. 379F. DELTA REGION AGRICULTURAL ECONOMIC DE-
VELOPMENT.
‘‘(a) IN GENERAL.—The Secretary may make grants
to assist in the development of state-of-the-art technology
in animal nutrition (including research and development
of the technology) and value-added manufacturing to pro-
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mote an economic platform for the Delta region (as defined
in section 382A) to relieve severe economic conditions.
‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$7,000,000 for each of fiscal years 2002 through 2006.’’.
(e) DEFINITION
OF LOWER MISSISSIPPI.—Section
4(2)(I) of the Delta Development Act (42 U.S.C. 3121 note;
Public Law 100–460) is amended by inserting ‘‘Butler,
Conecuh, Escambia, Monroe,’’ after ‘‘Russell,’’.
SEC. 648. SEARCH GRANTS FOR SMALL COMMUNITIES.
The Consolidated Farm and Rural Development Act
(as amended by section 604) is amended by adding at the
end the following:
‘‘Subtitle J—SEARCH Grants for
Small Communities
‘‘SEC. 386A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) COUNCIL.—The term ‘council’ means an
independent citizens’ council established by section
386B(d).
‘‘(2) ENVIRONMENTAL PROJECT.—
‘‘(A) IN
GENERAL.—The term ‘environ-
mental project’ means a project that—
‘‘(i) improves environmental quality;
and
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‘‘(ii) is necessary to comply with an
environmental law (including a regulation).
‘‘(B) INCLUSION.—The term ‘environmental
project’ includes an initial feasibility study of a
project.
‘‘(3) REGION.—The term ‘region’ means a geo-
graphic area of a State, as determined by the Gov-
ernor of the State.
‘‘(4) SEARCH GRANT.—The term ‘SEARCH
grant’ means a grant for special environmental as-
sistance for the regulation of communities and habitat
awarded under section 386B(e)(3).
‘‘(5) SMALL COMMUNITY.—The term ‘small com-
munity’ means an incorporated or unincorporated
rural community with a population of 2,500 inhab-
itants or less.
‘‘(6) STATE.—The term ‘State’ has the meaning
given the term in section 381A(1).
‘‘SEC. 386B. SEARCH GRANT PROGRAM.
‘‘(a) IN GENERAL.—There is established the SEARCH
Grant Program.
‘‘(b) APPLICATION.—
‘‘(1) IN GENERAL.—Not later than October 1 of
each fiscal year, a State may submit to the Secretary
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an application to receive a grant under subsection (c)
for the fiscal year.
‘‘(2) REQUIREMENTS.—An application under
paragraph (1) shall contain—
‘‘(A) a certification by the State that the
State has appointed members to the council of
the State under subsection (c)(2)(C); and
‘‘(B) such information as the Secretary may
reasonably require.
‘‘(c) GRANTS TO STATES.—
‘‘(1) IN GENERAL.—Not later than 60 days after
the date on which the Office of Management and
Budget apportions any amounts made available
under this subtitle, for each fiscal year after the date
of enactment of this subtitle, the Secretary shall, on
request by a State—
‘‘(A) determine whether any application
submitted by the State under subsection (b)
meets the requirements of subsection (b)(2); and
‘‘(B) subject to paragraph (2), subsection
(e)(4)(B)(ii), and section 386D(b), if the Sec-
retary determines that the application meets the
requirements of subsection (b)(2), award a grant
of not to exceed $1,000,000 to the State, to be
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used by the council of the State to award
SEARCH grants under subsection (e).
‘‘(2) GRANTS TO CERTAIN STATES.—The aggre-
gate amount of grants awarded to States other than
Alaska, Hawaii, or 1 of the 48 contiguous States,
under this subsection shall not exceed $1,000,000 for
any fiscal year.
‘‘(d) INDEPENDENT CITIZENS’ COUNCIL.—
‘‘(1) ESTABLISHMENT.—There is established in
each State an independent citizens’ council to carry
out the duties described in this section.
‘‘(2) COMPOSITION.—
‘‘(A) IN GENERAL.—Each council shall be
composed of 9 members, appointed by the Gov-
ernor of the State.
‘‘(B) REPRESENTATION; RESIDENCE.—Each
member of a council shall—
‘‘(i) represent an individual region of
the State, as determined by the Governor of
the State in which the council is established;
‘‘(ii) reside in a small community of
the State; and
‘‘(iii) be representative of the popu-
lations of the State.
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‘‘(C) APPOINTMENT.—Before a State re-
ceives funds under this subtitle, the State shall
appoint members to the council for the fiscal
year, except that not more than 1 member shall
be an agent, employee, or official of the State
government.
‘‘(D) CHAIRPERSON.—Each council shall se-
lect a chairperson from among the members of
the council, except that a member who is an
agent, employee, or official of the State govern-
ment shall not serve as chairperson.
‘‘(E) FEDERAL REPRESENTATION.—
‘‘(i) IN
GENERAL.—An officer, em-
ployee, or agent of the Federal Government
may participate in the activities of the
council—
‘‘(I) in an advisory capacity; and
‘‘(II) at the invitation of the
council.
‘‘(ii) RURAL DEVELOPMENT STATE DI-
RECTORS.—On the request of the council of
a State, the State Director for Rural Devel-
opment of the State shall provide advice
and consultation to the council.
‘‘(3) SEARCH GRANTS.—
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‘‘(A) IN GENERAL.—Each council shall re-
view applications for, and recommend awards of,
SEARCH grants to small communities that meet
the eligibility criteria under subsection (c).
‘‘(B) RECOMMENDATIONS.—In awarding a
SEARCH grant, a State—
‘‘(i) shall follow the recommendations
of the council of the State;
‘‘(ii) shall award the funds for any rec-
ommended environmental project in a time-
ly and expeditious manner; and
‘‘(iii) shall not award a SEARCH
grant to a grantee or project in violation of
any law of the State (including a regula-
tion).
‘‘(C) 
NO
MATCHING
REQUIREMENT.—A
small community that receives a SEARCH grant
under this section shall not be required to pro-
vide matching funds.
‘‘(e) SEARCH GRANTS FOR SMALL COMMUNITIES.—
‘‘(1) ELIGIBILITY.—A SEARCH grant shall be
awarded under this section only to a small commu-
nity for 1 or more environmental projects for which
the small community—
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‘‘(A) needs funds to carry out initial feasi-
bility or environmental studies before applying
to traditional funding sources; or
‘‘(B) demonstrates, to the satisfaction of the
council, that the small community has been un-
able to obtain sufficient funding from traditional
funding sources.
‘‘(2) APPLICATION.—
‘‘(A) DATE.—The council shall establish
such deadline by which small communities shall
submit applications for grants under this section
as will permit the council adequate time to re-
view and make recommendations relating to the
applications.
‘‘(B) LOCATION OF APPLICATION.—A small
community shall submit an application de-
scribed in subparagraph (A) to the council in the
State in which the small community is located.
‘‘(C) CONTENT OF APPLICATION.—An appli-
cation described in subparagraph (A) shall
include—
‘‘(i) a description of the proposed envi-
ronmental project (including an expla-
nation of how the project would assist the
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small community in complying with an en-
vironmental law (including a regulation));
‘‘(ii) an explanation of why the project
is important to the small community;
‘‘(iii) a description of all actions taken
with respect to the project, including a de-
scription of any attempt to secure funding
and a description of demonstrated need for
funding for the project, as of the date of the
application; and
‘‘(iv) a SEARCH grant application
form provided by the council, completed and
with all required supporting documentation.
‘‘(3) REVIEW AND RECOMMENDATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than March 5 of
each fiscal year, each council shall—
‘‘(i) review all applications received
under paragraph (2); and
‘‘(ii) recommend for award SEARCH
grants to small communities based on—
‘‘(I) an evaluation of the eligi-
bility criteria under paragraph (1);
and
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‘‘(II) the content of the applica-
tion.
‘‘(B) EXTENSION OF DEADLINE.—The State
may extend the deadline described in subpara-
graph (A) by not more than 10 days in a case
in which the receipt of recommendations from a
council under subparagraph (A)(ii) is delayed
because of circumstances beyond the control of
the council, as determined by the State.
‘‘(4) UNEXPENDED FUNDS.—
‘‘(A) IN GENERAL.—If, for any fiscal year,
any unexpended funds remain after SEARCH
grants are awarded under subsection (d)(3)(B),
the council may repeat the application and re-
view process so that any remaining funds may
be recommended for award, and awarded, not
later than July 30 of the fiscal year.
‘‘(B) RETENTION OF FUNDS.—
‘‘(i) IN
GENERAL.—Any unexpended
funds that are not awarded under sub-
section (d)(3)(B) or subparagraph (A) shall
be retained by the State for award during
the following fiscal year.
‘‘(ii) LIMITATION.—A State that accu-
mulates a balance of unexpended funds de-
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scribed 
in 
clause 
(i) 
of 
more 
than
$3,000,000 shall be ineligible to apply for
additional funds for SEARCH grants until
such time as the State expends the portion
of the balance that exceeds $3,000,000.
‘‘SEC. 386C. REPORT.
‘‘Not later than September 1 of the first fiscal year
for which a SEARCH grant is awarded by a council, and
annually thereafter, the council shall submit to the Sec-
retary a report that—
‘‘(1) describes the number of SEARCH grants
awarded during the fiscal year;
‘‘(2) identifies each small community that re-
ceived a SEARCH grant during the fiscal year;
‘‘(3) describes the project or purpose for which
each SEARCH grant was awarded, including a state-
ment of the benefit to public health or the environ-
ment of the environmental project receiving the grant
funds; and
‘‘(4) describes the status of each project or por-
tion of a project for which a SEARCH grant was
awarded, including a project or portion of a project
for which a SEARCH grant was awarded for any fis-
cal year before the fiscal year in which the report is
submitted.
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‘‘SEC. 386D. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out section 386B(c)
$51,000,000, of which not to exceed $1,000,000 shall be used
to make grants under section 386B(c)(2).
‘‘(b) ACTUAL APPROPRIATION.—If funds to carry out
section 386B(c) are made available for a fiscal year in an
amount that is less than the amount authorized under sub-
section (a) for the fiscal year, the appropriated funds shall
be divided equally among the 50 States.
‘‘(c) UNUSED FUNDS.—If, for any fiscal year, a State
does not apply, or does not qualify, to receive funds under
section 386B(b), the funds that would have been made avail-
able to the State under section 386B(c) on submission by
the State of a successful application under section 386B(b)
shall be redistributed for award under this subtitle among
States, the councils of which awarded 1 or more SEARCH
grants during the preceding fiscal year.
‘‘(d) OTHER EXPENSES.—There are authorized to be
appropriated such sums as are necessary to carry out the
provisions of this subtitle (other than section 386B(c)).’’.
SEC. 649. NORTHERN GREAT PLAINS REGIONAL AUTHOR-
ITY.
The Consolidated Farm and Rural Development Act
(as amended by section 648) is amended by adding at the
end the following:
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‘‘Subtitle K—Northern Great Plains
Regional Authority
‘‘SEC. 387A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) AUTHORITY.—The term ‘Authority’ means
the Northern Great Plains Regional Authority estab-
lished by section 387B.
‘‘(2) FEDERAL
GRANT
PROGRAM.—The term
‘Federal grant program’ means a Federal grant pro-
gram to provide assistance in—
‘‘(A) implementing the recommendations of
the Northern Great Plains Rural Development
Commission established by the Northern Great
Plains Rural Development Act (7 U.S.C. 2661
note; Public Law 103–318);
‘‘(B) acquiring or developing land;
‘‘(C) constructing or equipping a highway,
road, bridge, or facility;
‘‘(D) carrying out other economic develop-
ment activities; or
‘‘(E) conducting research activities related
to the activities described in subparagraphs (A)
through (D).
‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 4 of the Indian
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Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(4) REGION.—The term ‘region’ means the
States of Iowa, Minnesota, Nebraska, North Dakota,
and South Dakota.
‘‘SEC. 387B. NORTHERN GREAT PLAINS REGIONAL AUTHOR-
ITY.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—There is established the
Northern Great Plains Regional Authority.
‘‘(2) COMPOSITION.—The Authority shall be com-
posed of—
‘‘(A) a Federal member, to be appointed by
the President, by and with the advice and con-
sent of the Senate;
‘‘(B) the Governor (or a designee of the Gov-
ernor) of each State in the region that elects to
participate in the Authority; and
‘‘(C) a member of an Indian tribe, who
shall be a chairperson of an Indian tribe in the
region or a designee of such a chairperson, to be
appointed by the President, by and with the ad-
vice and consent of the Senate.
‘‘(3) COCHAIRPERSONS.—The Authority shall be
headed by—
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‘‘(A) the Federal member, who shall serve—
‘‘(i) as the Federal cochairperson; and
‘‘(ii) as a liaison between the Federal
Government and the Authority;
‘‘(B) a State cochairperson, who—
‘‘(i) shall be a Governor of a partici-
pating State in the region; and
‘‘(ii) shall be elected by the State mem-
bers for a term of not less than 1 year; and
‘‘(C) the member of an Indian tribe, who
shall serve—
‘‘(i) as the tribal cochairperson; and
‘‘(ii) as a liaison between the govern-
ments of Indian tribes in the region and the
Authority.
‘‘(b) ALTERNATE MEMBERS.—
‘‘(1) ALTERNATE
FEDERAL
COCHAIRPERSON.—
The President shall appoint an alternate Federal co-
chairperson.
‘‘(2) STATE ALTERNATES.—
‘‘(A) IN GENERAL.—The State member of a
participating State may have a single alternate,
who shall be—
‘‘(i) a resident of that State; and
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‘‘(ii) appointed by the Governor of the
State.
‘‘(B) QUORUM.—A State alternate member
shall not be counted toward the establishment of
a quorum of the members of the Authority in
any case in which a quorum of the State mem-
bers is required to be present.
‘‘(3) ALTERNATE TRIBAL COCHAIRPERSON.—The
President shall appoint an alternate tribal cochair-
person, by and with the advice and consent of the
Senate.
‘‘(4) DELEGATION OF POWER.—No power or re-
sponsibility of the Authority specified in paragraphs
(2) and (3) of subsection (c), and no voting right of
any member of the Authority, shall be delegated to
any person who is not—
‘‘(A) a member of the Authority; or
‘‘(B) entitled to vote in Authority meetings.
‘‘(c) VOTING.—
‘‘(1) IN GENERAL.—A decision by the Authority
shall require a majority vote of the Authority (not in-
cluding any member representing a State that is de-
linquent under subsection (g)(2)(D)) to be effective.
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‘‘(2) QUORUM.—A quorum of State members
shall be required to be present for the Authority to
make any policy decision, including—
‘‘(A) a modification or revision of an Au-
thority policy decision;
‘‘(B) approval of a State or regional devel-
opment plan; and
‘‘(C) any allocation of funds among the
States.
‘‘(3) PROJECT AND GRANT PROPOSALS.—The ap-
proval of project and grant proposals shall be—
‘‘(A) a responsibility of the Authority; and
‘‘(B) conducted in accordance with section
387I.
‘‘(4) VOTING BY ALTERNATE MEMBERS.—An al-
ternate member shall vote in the case of the absence,
death, disability, removal, or resignation of the Fed-
eral, State, or Indian tribe member for whom the al-
ternate member is an alternate.
‘‘(d) DUTIES.—The Authority shall—
‘‘(1) develop, on a continuing basis, comprehen-
sive and coordinated plans and programs to establish
priorities and approve grants for the economic devel-
opment of the region, giving due consideration to
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other Federal, State, tribal, and local planning and
development activities in the region;
‘‘(2) not later than 220 days after the date of en-
actment of this subtitle, establish priorities in a devel-
opment plan for the region (including 5-year regional
outcome targets);
‘‘(3) assess the needs and assets of the region
based on available research, demonstrations, inves-
tigations, assessments, and evaluations of the region
prepared by Federal, State, tribal, and local agencies,
universities, local development districts, and other
nonprofit groups;
‘‘(4) formulate and recommend to the Governors
and legislatures of States that participate in the Au-
thority forms of interstate cooperation;
‘‘(5) work with State, tribal, and local agencies
in developing appropriate model legislation;
‘‘(6)(A) enhance the capacity of, and provide
support for, local development districts in the region;
or
‘‘(B) if no local development district exists in an
area in a participating State in the region, foster the
creation of a local development district;
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‘‘(7) encourage private investment in industrial,
commercial, and other economic development projects
in the region; and
‘‘(8) cooperate with and assist State governments
with economic development programs of participating
States.
‘‘(e) ADMINISTRATION.—In carrying out subsection
(d), the Authority may—
‘‘(1) hold such hearings, sit and act at such
times and places, take such testimony, receive such
evidence, and print or otherwise reproduce and dis-
tribute a description of the proceedings and reports
on actions by the Authority as the Authority con-
siders appropriate;
‘‘(2) authorize, through the Federal, State, or
tribal cochairperson or any other member of the Au-
thority designated by the Authority, the administra-
tion of oaths if the Authority determines that testi-
mony should be taken or evidence received under oath;
‘‘(3) request from any Federal, State, tribal, or
local agency such information as may be available to
or procurable by the agency that may be of use to the
Authority in carrying out the duties of the Authority;
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‘‘(4) adopt, amend, and repeal bylaws and rules
governing the conduct of business and the perform-
ance of duties of the Authority;
‘‘(5) request the head of any Federal agency to
detail to the Authority such personnel as the Author-
ity requires to carry out duties of the Authority, each
such detail to be without loss of seniority, pay, or
other employee status;
‘‘(6) request the head of any State agency, tribal
government, or local government to detail to the Au-
thority such personnel as the Authority requires to
carry out duties of the Authority, each such detail to
be without loss of seniority, pay, or other employee
status;
‘‘(7) provide for coverage of Authority employees
in a suitable retirement and employee benefit system
by—
‘‘(A) making arrangements or entering into
contracts with any participating State govern-
ment or tribal government; or
‘‘(B) otherwise providing retirement and
other employee benefit coverage;
‘‘(8) accept, use, and dispose of gifts or donations
of services or real, personal, tangible, or intangible
property;
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‘‘(9) enter into and perform such contracts,
leases, cooperative agreements, or other transactions
as are necessary to carry out Authority duties, in-
cluding any contracts, leases, or cooperative agree-
ments with—
‘‘(A) any department, agency, or instru-
mentality of the United States;
‘‘(B) any State (including a political sub-
division, agency, or instrumentality of the
State);
‘‘(C) any Indian tribe in the region; or
‘‘(D) any person, firm, association, or cor-
poration; and
‘‘(10) establish and maintain a central office
and field offices at such locations as the Authority
may select.
‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal
agency shall—
‘‘(1) cooperate with the Authority; and
‘‘(2) provide, on request of the Federal cochair-
person, appropriate assistance in carrying out this
subtitle, in accordance with applicable Federal laws
(including regulations).
‘‘(g) ADMINISTRATIVE EXPENSES.—
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‘‘(1) FEDERAL SHARE.—The Federal share of the
administrative expenses of the Authority shall be—
‘‘(A) for fiscal year 2002, 100 percent;
‘‘(B) for fiscal year 2003, 75 percent; and
‘‘(C) for fiscal year 2004 and each fiscal
year thereafter, 50 percent.
‘‘(2) NON-FEDERAL SHARE.—
‘‘(A) IN GENERAL.—The non-Federal share
of the administrative expenses of the Authority
shall be paid by non-Federal sources in the
States that participate in the Authority.
‘‘(B) SHARE PAID BY EACH STATE.—The
share of administrative expenses of the Authority
to be paid by non-Federal sources in each State
shall be determined by the Authority.
‘‘(C) NO
FEDERAL
PARTICIPATION.—The
Federal cochairperson shall not participate or
vote in any decision under subparagraph (B).
‘‘(D) DELINQUENT STATES.—If a State is
delinquent in payment of the State’s share of ad-
ministrative expenses of the Authority under this
subsection—
‘‘(i) no assistance under this subtitle
shall be provided to the State (including as-
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sistance to a political subdivision or a resi-
dent of the State); and
‘‘(ii) no member of the Authority from
the State shall participate or vote in any
action by the Authority.
‘‘(h) COMPENSATION.—
‘‘(1) FEDERAL AND TRIBAL COCHAIRPERSONS.—
The Federal cochairperson and the tribal cochair-
person shall be compensated by the Federal Govern-
ment at the annual rate of basic pay prescribed for
level III of the Executive Schedule in subchapter II of
chapter 53 of title 5, United States Code.
‘‘(2) ALTERNATE
FEDERAL
AND
TRIBAL
CO-
CHAIRPERSONS.—The alternate Federal cochairperson
and the alternate tribal cochairperson—
‘‘(A) shall be compensated by the Federal
Government at the annual rate of basic pay pre-
scribed for level V of the Executive Schedule de-
scribed in paragraph (1); and
‘‘(B) when not actively serving as an alter-
nate, shall perform such functions and duties as
are delegated by the Federal cochairperson or the
tribal cochairperson, respectively.
‘‘(3) STATE MEMBERS AND ALTERNATES.—
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‘‘(A) IN
GENERAL.—A State shall com-
pensate each member and alternate representing
the State on the Authority at the rate established
by State law.
‘‘(B) NO ADDITIONAL COMPENSATION.—No
State member or alternate member shall receive
any salary, or any contribution to or sup-
plementation of salary from any source other
than the State for services provided by the mem-
ber or alternate member to the Authority.
‘‘(4) DETAILED EMPLOYEES.—
‘‘(A) IN GENERAL.—No person detailed to
serve the Authority under subsection (e)(6) shall
receive any salary or any contribution to or sup-
plementation of salary for services provided to
the Authority from—
‘‘(i) any source other than the State,
tribal, local, or intergovernmental agency
from which the person was detailed; or
‘‘(ii) the Authority.
‘‘(B) VIOLATION.—Any person that violates
this paragraph shall be fined not more than
$5,000, imprisoned not more than 1 year, or
both.
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‘‘(C) APPLICABLE
LAW.—The Federal co-
chairperson, the alternate Federal cochairperson,
and any Federal officer or employee detailed to
duty on the Authority under subsection (e)(5)
shall not be subject to subparagraph (A), but
shall remain subject to sections 202 through 209
of title 18, United States Code.
‘‘(5) ADDITIONAL PERSONNEL.—
‘‘(A) COMPENSATION.—
‘‘(i) IN GENERAL.—The Authority may
appoint and fix the compensation of an ex-
ecutive director and such other personnel as
are necessary to enable the Authority to
carry out the duties of the Authority.
‘‘(ii) 
EXCEPTION.—Compensation
under clause (i) shall not exceed the max-
imum rate for the Senior Executive Service
under section 5382 of title 5, United States
Code, including any applicable locality-
based comparability payment that may be
authorized under section 5304(h)(2)(C) of
that title.
‘‘(B) EXECUTIVE DIRECTOR.—The executive
director shall be responsible for—
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‘‘(i) the carrying out of the adminis-
trative duties of the Authority;
‘‘(ii) direction of the Authority staff;
and
‘‘(iii) such other duties as the Author-
ity may assign.
‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No
member, alternate, officer, or employee of the Au-
thority (except the Federal cochairperson of the
Authority, the alternate and staff for the Federal
cochairperson, and any Federal employee de-
tailed to the Authority under subsection (e)(5))
shall be considered to be a Federal employee for
any purpose.
‘‘(i) CONFLICTS OF INTEREST.—
‘‘(1) IN GENERAL.—Except as provided under
paragraph (2), no State member, Indian tribe mem-
ber, State alternate, officer, or employee of the Au-
thority shall participate personally and substantially
as a member, alternate, officer, or employee of the Au-
thority, through decision, approval, disapproval, rec-
ommendation, the rendering of advice, investigation,
or otherwise, in any proceeding, application, request
for a ruling or other determination, contract, claim,
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controversy, or other matter in which, to knowledge of
the member, alternate, officer, or employee—
‘‘(A) the member, alternate, officer, or em-
ployee;
‘‘(B) the spouse, minor child, partner, or or-
ganization (other than a State or political sub-
division of the State or the Indian tribe) of the
member, alternate, officer, or employee, in which
the member, alternate, officer, or employee is
serving as officer, director, trustee, partner, or
employee; or
‘‘(C) any person or organization with whom
the member, alternate, officer, or employee is ne-
gotiating or has any arrangement concerning
prospective employment;
has a financial interest.
‘‘(2) DISCLOSURE.—Paragraph (1) shall not
apply if the State member, Indian tribe member, al-
ternate, officer, or employee—
‘‘(A) immediately advises the Authority of
the nature and circumstances of the proceeding,
application, request for a ruling or other deter-
mination, contract, claim, controversy, or other
particular matter presenting a potential conflict
of interest;
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‘‘(B) makes full disclosure of the financial
interest; and
‘‘(C) before the proceeding concerning the
matter presenting the conflict of interest, receives
a written determination by the Authority that
the interest is not so substantial as to be likely
to affect the integrity of the services that the Au-
thority may expect from the State member, In-
dian tribe member, alternate, officer, or em-
ployee.
‘‘(3) VIOLATION.—Any person that violates this
subsection shall be fined not more than $10,000, im-
prisoned not more than 2 years, or both.
‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—
The Authority may declare void any contract, loan, or
grant of or by the Authority in relation to which the Au-
thority determines that there has been a violation of any
provision under subsection (h)(4) or subsection (i) of this
subtitle, or sections 202 through 209 of title 18, United
States Code.
‘‘SEC. 387C. ECONOMIC AND COMMUNITY DEVELOPMENT
GRANTS.
‘‘(a) IN GENERAL.—The Authority may approve
grants to States, Indian tribes, local governments, and pub-
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lic and nonprofit organizations for projects, approved in
accordance with section 387I—
‘‘(1) to develop the transportation and tele-
communication infrastructure of the region for the
purpose of facilitating economic development in the
region (except that grants for this purpose may be
made only to States, Indian tribes, local governments,
and nonprofit organizations);
‘‘(2) to assist the region in obtaining the job
training, employment-related education, and business
development (with an emphasis on entrepreneurship)
that are needed to build and maintain strong local
economies;
‘‘(3) to provide assistance to severely distressed
and underdeveloped areas that lack financial re-
sources for improving basic public services;
‘‘(4) to provide assistance to severely distressed
and underdeveloped areas that lack financial re-
sources for equipping industrial parks and related fa-
cilities; and
‘‘(5) to otherwise achieve the purposes of this
subtitle.
‘‘(b) FUNDING.—
‘‘(1) IN GENERAL.—Funds for grants under sub-
section (a) may be provided—
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‘‘(A) entirely from appropriations to carry
out this section;
‘‘(B) in combination with funds available
under another Federal grant program; or
‘‘(C) from any other source.
‘‘(2) PRIORITY OF FUNDING.—To best build the
foundations for long-term economic development and
to complement other Federal, State, and tribal re-
sources in the region, Federal funds available under
this subtitle shall be focused on the activities in the
following order or priority:
‘‘(A) Basic public infrastructure in dis-
tressed counties and isolated areas of distress.
‘‘(B) Transportation and telecommuni-
cation infrastructure for the purpose of facili-
tating economic development in the region.
‘‘(C) Business development, with emphasis
on entrepreneurship.
‘‘(D) Job training or employment-related
education, with emphasis on use of existing pub-
lic educational institutions located in the region.
‘‘(3) FEDERAL SHARE IN GRANT PROGRAMS.—
Notwithstanding any provision of law limiting the
Federal share in any grant program, funds appro-
priated to carry out this section may be used to in-
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crease a Federal share in a grant program, as the Au-
thority determines appropriate.
‘‘SEC. 387D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
‘‘(a) FINDING.—Congress finds that certain States and
local communities of the region, including local develop-
ment districts, may be unable to take maximum advantage
of Federal grant programs for which the States and commu-
nities are eligible because—
‘‘(1) they lack the economic resources to provide
the required matching share; or
‘‘(2) there are insufficient funds available under
the applicable Federal law authorizing the Federal
grant program to meet pressing needs of the region.
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith-
standing any provision of law limiting the Federal share,
the areas eligible for assistance, or the authorizations of ap-
propriations, under any Federal grant program, and in ac-
cordance with subsection (c), the Authority, with the ap-
proval of the Federal cochairperson and with respect to a
project to be carried out in the region, may—
‘‘(1) increase the Federal share of the costs of a
project under any Federal grant program to not more
than 90 percent (except as provided in section
387F(b)); and
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‘‘(2) use amounts made available to carry out
this subtitle to pay all or a portion of the increased
Federal share.
‘‘(c) CERTIFICATIONS.—
‘‘(1) IN GENERAL.—In the case of any project for
which all or any portion of the basic Federal share
of the costs of the project is proposed to be paid under
this section, no Federal contribution shall be made
until the Federal official administering the Federal
law that authorizes the Federal grant program cer-
tifies that the project—
‘‘(A) meets (except as provided in subsection
(b)) the applicable requirements of the applicable
Federal grant program; and
‘‘(B) could be approved for Federal con-
tribution under the Federal grant program if
funds were available under the law for the
project.
‘‘(2) CERTIFICATION BY AUTHORITY.—
‘‘(A) IN GENERAL.—The certifications and
determinations required to be made by the Au-
thority for approval of projects under this Act in
accordance with section 387I—
‘‘(i) shall be controlling; and
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‘‘(ii) shall be accepted by the Federal
agencies.
‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR-
PERSON.—In the case of any project described in
paragraph (1), any finding, report, certification,
or documentation required to be submitted with
respect to the project to the head of the depart-
ment, agency, or instrumentality of the Federal
Government responsible for the administration of
the Federal grant program under which the
project is carried out shall be accepted by the
Federal cochairperson.
‘‘SEC. 387E. LOCAL DEVELOPMENT DISTRICTS AND ORGANI-
ZATIONS AND NORTHERN GREAT PLAINS INC.
‘‘(a) DEFINITION
OF
LOCAL
DEVELOPMENT
DIS-
TRICT.—In this section, the term ‘local development district’
means an entity—
‘‘(1) that—
‘‘(A) is a planning district in existence on
the date of enactment of this subtitle that is rec-
ognized by the Economic Development Adminis-
tration of the Department of Commerce; or
‘‘(B) is—
‘‘(i) organized and operated in a man-
ner that ensures broad-based community
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participation and an effective opportunity
for other nonprofit groups to contribute to
the development and implementation of pro-
grams in the region;
‘‘(ii) governed by a policy board with
at least a simple majority of members con-
sisting of—
‘‘(I) elected officials or employees
of a general purpose unit of local gov-
ernment who have been appointed to
represent the government; or
‘‘(II) individuals appointed by the
general purpose unit of local govern-
ment to represent the government;
‘‘(iii) certified to the Authority as hav-
ing a charter or authority that includes the
economic development of counties or parts
of counties or other political subdivisions
within the region—
‘‘(I) by the Governor of each State
in which the entity is located; or
‘‘(II) by the State officer des-
ignated by the appropriate State law
to make the certification; and
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‘‘(iv)(I) a nonprofit incorporated body
organized or chartered under the law of the
State in which the entity is located;
‘‘(II) a nonprofit agency or instrumen-
tality of a State or local government;
‘‘(III) a public organization established
before the date of enactment of this subtitle
under State law for creation of multi-juris-
dictional, area-wide planning organiza-
tions; or
‘‘(IV) a nonprofit association or com-
bination of bodies, agencies, and instrumen-
talities described in subclauses (I) through
(III); and
‘‘(2) that has not, as certified by the Federal
cochairperson—
‘‘(A) inappropriately used Federal grant
funds from any Federal source; or
‘‘(B) appointed an officer who, during the
period in which another entity inappropriately
used Federal grant funds from any Federal
source, was an officer of the other entity.
‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—
‘‘(1) IN
GENERAL.—The Authority may make
grants for administrative expenses under this section.
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‘‘(2) CONDITIONS FOR GRANTS.—
‘‘(A) MAXIMUM AMOUNT.—The amount of
any grant awarded under paragraph (1) shall
not exceed 80 percent of the administrative ex-
penses of the local development district receiving
the grant.
‘‘(B) MAXIMUM
PERIOD.—No grant de-
scribed in paragraph (1) shall be awarded to a
State agency certified as a local development dis-
trict for a period greater than 3 years.
‘‘(C) LOCAL SHARE.—The contributions of a
local development district for administrative ex-
penses may be in cash or in kind, fairly evalu-
ated, including space, equipment, and services.
‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—
A local development district shall—
‘‘(1) operate as a lead organization serving
multicounty areas in the region at the local level; and
‘‘(2) serve as a liaison between State, tribal, and
local governments, nonprofit organizations (including
community-based groups and educational institu-
tions), the business community, and citizens that—
‘‘(A) are involved in multijurisdictional
planning;
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‘‘(B) provide technical assistance to local
jurisdictions and potential grantees; and
‘‘(C) provide leadership and civic develop-
ment assistance.
‘‘(d) NORTHERN GREAT PLAINS INC.—Northern Great
Plains Inc., a nonprofit corporation incorporated in the
State of Minnesota to implement the recommendations of
the Northern Great Plains Rural Development Commission
established by the Northern Great Plains Rural Develop-
ment Act (7 U.S.C. 2661 note; Public Law 103–318)—
‘‘(1) shall serve as an independent, primary re-
source for the Authority on issues of concern to the re-
gion;
‘‘(2) shall advise the Authority on development of
international trade;
‘‘(3) may provide research, education, training,
and other support to the Authority; and
‘‘(4) may carry out other activities on its own
behalf or on behalf of other entities.
‘‘SEC. 387F. DISTRESSED COUNTIES AND AREAS AND NON-
DISTRESSED COUNTIES.
‘‘(a) DESIGNATIONS.—Not later than 90 days after the
date of enactment of this subtitle, and annually thereafter,
the Authority, in accordance with such criteria as the Au-
thority may establish, shall designate—
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‘‘(1) as distressed counties, counties in the region
that are the most severely and persistently distressed
and underdeveloped and have high rates of poverty,
unemployment, or outmigration;
‘‘(2) as nondistressed counties, counties in the re-
gion that are not designated as distressed counties
under paragraph (1); and
‘‘(3) as isolated areas of distress, areas located in
nondistressed counties (as designated under para-
graph (2)) that have high rates of poverty, unemploy-
ment, or outmigration.
‘‘(b) DISTRESSED COUNTIES.—
‘‘(1) IN GENERAL.—The Authority shall allocate
at least 75 percent of the appropriations made avail-
able under section 387M for programs and projects
designed to serve the needs of distressed counties and
isolated areas of distress in the region.
‘‘(2) FUNDING LIMITATIONS.—The funding limi-
tations under section 387D(b) shall not apply to a
project to provide transportation or telecommuni-
cation or basic public services to residents of 1 or
more distressed counties or isolated areas of distress
in the region.
‘‘(c) NONDISTRESSED COUNTIES.—
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‘‘(1) IN GENERAL.—Except as provided in this
subsection, no funds shall be provided under this sub-
title for a project located in a county designated as
a nondistressed county under subsection (a)(2).
‘‘(2) EXCEPTIONS.—
‘‘(A) IN GENERAL.—The funding prohibi-
tion under paragraph (1) shall not apply to
grants to fund the administrative expenses of
local 
development 
districts 
under 
section
387E(b).
‘‘(B) MULTICOUNTY
PROJECTS.—The Au-
thority may waive the application of the funding
prohibition under paragraph (1) to—
‘‘(i) a multicounty project that in-
cludes participation by a nondistressed
county; or
‘‘(ii) any other type of project;
if the Authority determines that the project could
bring significant benefits to areas of the region
outside a nondistressed county.
‘‘(C) ISOLATED AREAS OF DISTRESS.—For
a designation of an isolated area of distress for
assistance to be effective, the designation shall be
supported—
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‘‘(i) by the most recent Federal data
available; or
‘‘(ii) if no recent Federal data are
available, by the most recent data available
through the government of the State in
which the isolated area of distress is located.
‘‘(d) TRANSPORTATION, TELECOMMUNICATION, AND
BASIC PUBLIC INFRASTRUCTURE.—The Authority shall al-
locate at least 50 percent of any funds made available under
section 387M for transportation, telecommunication, and
basic public infrastructure projects authorized under para-
graphs (1) and (3) of section 387C(a).
‘‘SEC. 387G. DEVELOPMENT PLANNING PROCESS.
‘‘(a) STATE DEVELOPMENT PLAN.—In accordance
with policies established by the Authority, each State mem-
ber shall submit a development plan for the area of the re-
gion represented by the State member.
‘‘(b) CONTENT OF PLAN.—A State development plan
submitted under subsection (a) shall reflect the goals, objec-
tives, and priorities identified in the regional development
plan developed under section 387B(d)(2).
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process
(including the selection of programs and projects for assist-
ance), a State may—
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‘‘(1) consult with—
‘‘(A) local development districts; and
‘‘(B) local units of government; and
‘‘(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities de-
scribed in paragraph (1).
‘‘(d) PUBLIC PARTICIPATION.—
‘‘(1) IN GENERAL.—The Authority and applica-
ble State and local development districts shall encour-
age and assist, to the maximum extent practicable,
public participation in the development, revision, and
implementation of all plans and programs under this
subtitle.
‘‘(2) REGULATIONS.—The Authority shall de-
velop guidelines for providing public participation
described in paragraph (1), including public hear-
ings.
‘‘SEC. 387H. PROGRAM DEVELOPMENT CRITERIA.
‘‘(a) IN GENERAL.—In considering programs and
projects to be provided assistance under this subtitle, and
in establishing a priority ranking of the requests for assist-
ance provided to the Authority, the Authority shall follow
procedures that ensure, to the maximum extent practicable,
consideration of—
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‘‘(1) the relationship of the project or class of
projects to overall regional development;
‘‘(2) the per capita income and poverty and un-
employment and outmigration rates in an area;
‘‘(3) the financial resources available to the ap-
plicants for assistance seeking to carry out the
project, with emphasis on ensuring that projects are
adequately financed to maximize the probability of
successful economic development;
‘‘(4) the importance of the project or class of
projects in relation to other projects or classes of
projects that may be in competition for the same
funds;
‘‘(5) the prospects that the project for which as-
sistance is sought will improve, on a continuing rath-
er than a temporary basis, the opportunities for em-
ployment, the average level of income, or the economic
development of the area to be served by the project;
and
‘‘(6) the extent to which the project design pro-
vides for detailed outcome measurements by which
grant expenditures and the results of the expenditures
may be evaluated.
‘‘(b) NO RELOCATION ASSISTANCE.—No financial as-
sistance authorized by this subtitle shall be used to assist
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a person or entity in relocating from one area to another,
except that financial assistance may be used as otherwise
authorized by this title to attract businesses from outside
the region to the region.
‘‘(c) MAINTENANCE OF EFFORT.—Funds may be pro-
vided for a program or project in a State under this subtitle
only if the Authority determines that the level of Federal
or State financial assistance provided under a law other
than this subtitle, for the same type of program or project
in the same area of the State within the region, will not
be reduced as a result of funds made available by this sub-
title.
‘‘SEC. 387I. APPROVAL OF DEVELOPMENT PLANS AND
PROJECTS.
‘‘(a) IN GENERAL.—A State or regional development
plan or any multistate subregional plan that is proposed
for development under this subtitle shall be reviewed by the
Authority.
‘‘(b) EVALUATION BY STATE MEMBER.—An applica-
tion for a grant or any other assistance for a project under
this subtitle shall be made through and evaluated for ap-
proval by the State member of the Authority representing
the applicant.
‘‘(c) CERTIFICATION.—An application for a grant or
other assistance for a project shall be approved only on cer-
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tification by the State member that the application for the
project—
‘‘(1) describes ways in which the project complies
with any applicable State development plan;
‘‘(2) meets applicable criteria under section
387H;
‘‘(3) provides adequate assurance that the pro-
posed project will be properly administered, operated,
and maintained; and
‘‘(4) otherwise meets the requirements of this sub-
title.
‘‘(d) VOTES FOR DECISIONS.—On certification by a
State member of the Authority of an application for a grant
or other assistance for a specific project under this section,
an affirmative vote of the Authority under section 387B(c)
shall be required for approval of the application.
‘‘SEC. 387J. CONSENT OF STATES.
‘‘Nothing in this subtitle requires any State to engage
in or accept any program under this subtitle without the
consent of the State.
‘‘SEC. 387K. RECORDS.
‘‘(a) RECORDS OF THE AUTHORITY.—
‘‘(1) IN GENERAL.—The Authority shall main-
tain accurate and complete records of all transactions
and activities of the Authority.
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‘‘(2) AVAILABILITY.—All records of the Authority
shall be available for audit and examination by the
Comptroller General of the United States and the In-
spector General of the Department of Agriculture (in-
cluding authorized representatives of the Comptroller
General and the Inspector General of the Department
of Agriculture).
‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST-
ANCE.—
‘‘(1) IN GENERAL.—A recipient of Federal funds
under this subtitle shall, as required by the Authority,
maintain accurate and complete records of trans-
actions and activities financed with Federal funds
and report to the Authority on the transactions and
activities to the Authority.
‘‘(2) AVAILABILITY.—All records required under
paragraph (1) shall be available for audit by the
Comptroller General of the United States, the Inspec-
tor General of the Department of Agriculture, and the
Authority (including authorized representatives of the
Comptroller General, the Inspector General of the De-
partment of Agriculture, and the Authority).
‘‘(c) ANNUAL AUDIT.—The Inspector General of the
Department of Agriculture shall audit the activities, trans-
actions, and records of the Authority on an annual basis.
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‘‘SEC. 387L. ANNUAL REPORT.
‘‘Not later than 180 days after the end of each fiscal
year, the Authority shall submit to the President and to
Congress a report describing the activities carried out under
this subtitle.
‘‘SEC. 387M. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to the Authority to carry out this subtitle
$30,000,000 for each of fiscal years 2002 through 2006, to
remain available until expended.
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5
percent of the amount appropriated under subsection (a)
for a fiscal year shall be used for administrative expenses
of the Authority.
‘‘(c) MINIMUM STATE SHARE OF GRANTS.—Notwith-
standing any other provision of this subtitle, for any fiscal
year, the aggregate amount of grants received by a State
and all persons or entities in the State under this subtitle
shall be not less than 1⁄3 of the product obtained by
multiplying—
‘‘(1) the aggregate amount of grants under this
subtitle for the fiscal year; and
‘‘(2) the ratio that—
‘‘(A) the population of the State (as deter-
mined by the Secretary of Commerce based on
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the most recent decennial census for which data
are available); bears to
‘‘(B) the population of the region (as so de-
termined).
‘‘SEC. 387N. TERMINATION OF AUTHORITY.
‘‘The authority provided by this subtitle terminates ef-
fective October 1, 2006.’’.
Subtitle D—Food, Agriculture, Con-
servation, and Trade Act of 1990
SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION CORPORATION.
(a) REPEAL
OF CORPORATION AUTHORIZATION.—
Subtitle G of title XVI of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5901 et seq.) is re-
pealed.
(b) DISPOSITION OF ASSETS.—On the date of enact-
ment of this Act—
(1) the assets, both tangible and intangible, of the
Alternative Agricultural Research and Commer-
cialization Corporation (referred to in this section as
the ‘‘Corporation’’), including the funds in the Alter-
native Agricultural Research and Commercialization
Revolving Fund as of the date of enactment of this
Act, are transferred to the Secretary of Agriculture;
and
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(2) notwithstanding the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471
et seq.), the Secretary shall have authority to manage
and dispose of the assets transferred under paragraph
(1) in a manner that, to the maximum extent prac-
ticable, provides the greatest return on investment.
(c) USE OF ASSETS.—
(1) IN GENERAL.—Funds transferred under sub-
section (b), and any income from assets or proceeds
from the sale of assets transferred under subsection
(b), shall be deposited into an account in the Treas-
ury, and shall remain available to the Secretary until
expended, without further appropriation, to pay—
(A) any outstanding claims or obligations
of the Corporation; and
(B) the costs incurred by the Secretary in
carrying out this section.
(2) FINAL DISPOSITION.—On final disposition of
all assets transferred under subsection (b), any funds
remaining in the account described in paragraph (1)
shall be transferred into miscellaneous receipts in the
Treasury.
(d) CONFORMING AMENDMENTS.—
(1) The following provisions are repealed:
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(A) Section 730 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
5902 note; Public Law 104–127).
(B) Section 9101(3)(Q) of title 31, United
States Code.
(2) Section 401(c) of the Agricultural Research,
Education, and Extension Reform Act of 1998 (7
U.S.C. 7621(c)) is amended by striking paragraph (1)
and inserting the following:
‘‘(1) CRITICAL
EMERGING
ISSUES.—Subject to
paragraph (2), the Secretary shall use the funds in
the Account for research, extension, and education
grants (referred to in this section as ‘grants’) to ad-
dress critical emerging agricultural issues related
to—
‘‘(A) future food production;
‘‘(B) environmental quality and natural re-
source management; or
‘‘(C) farm income.’’.
(3) Section 793(c)(1)(A)(ii)(II) of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 2204f(c)(1)(A)(ii)(II)) is amended by striking
‘‘subtitle G of title XVI and’’.
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SEC. 652. TELEMEDICINE AND DISTANCE LEARNING SERV-
ICES IN RURAL AREAS.
(a) IN GENERAL.—Section 2335A of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C.
950aaa–5) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
(b) CONFORMING AMENDMENT.—Section 1(b) of Public
Law 102–551 (7 U.S.C. 950aaa note) is amended by strik-
ing ‘‘1997’’ and inserting ‘‘2006’’.
Subtitle E—Rural Electrification
Act of 1936
SEC. 661. GUARANTEES FOR BONDS AND NOTES ISSUED
FOR ELECTRIFICATION OR TELEPHONE PUR-
POSES.
(a) IN GENERAL.—The Rural Electrification Act of
1936 is amended by inserting after section 313 (7 U.S.C.
940c) the following:
‘‘SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED
FOR ELECTRIFICATION OR TELEPHONE PUR-
POSES.
‘‘(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall guarantee payments on bonds or notes issued
by cooperative or other lenders organized on a not-for-profit
basis if the proceeds of the bonds or notes are used for elec-
trification or telephone projects eligible for assistance under
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this Act, including the refinancing of bonds or notes issued
for such projects.
‘‘(b) LIMITATIONS.—
‘‘(1) OUTSTANDING LOANS.—A lender shall not
receive a guarantee under this section for a bond or
note if, at the time of the guarantee, the total prin-
cipal amount of such guaranteed bonds or notes out-
standing of the lender would exceed the principal
amount of outstanding loans of the lender for elec-
trification or telephone purposes that have been made
concurrently with loans approved for such purposes
under this Act.
‘‘(2) GENERATION
OF
ELECTRICITY.—The Sec-
retary shall not guarantee payment on a bond or note
issued by a lender, the proceeds of which are used for
the generation of electricity.
‘‘(3) QUALIFICATIONS.—The Secretary may deny
the request of a lender for the guarantee of a bond or
note under this section if the Secretary determines
that—
‘‘(A) the lender does not have appropriate
expertise or experience or is otherwise not quali-
fied to make loans for electrification or telephone
purposes;
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‘‘(B) the bond or note issued by the lender
is not of reasonable and sufficient quality; or
‘‘(C) the lender has not provided sufficient
evidence that the proceeds of the bond or note are
used for eligible projects described in subsection
(a).
‘‘(4) INTEREST RATE REDUCTION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a lender may not use any
amount obtained from the reduction in funding
costs as a result of the guarantee of a bond or
note under this section to reduce the interest rate
on a new or outstanding loan.
‘‘(B) CONCURRENT LOANS.—A lender may
use any amount described in subparagraph (A)
to reduce the interest rate on a loan if the loan
is—
‘‘(i) made by the lender for electrifica-
tion or telephone projects that are eligible
for assistance under this Act; and
‘‘(ii) made concurrently with a loan
approved by the Secretary under this Act
for such a project, as provided in section
307.
‘‘(c) FEES.—
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‘‘(1) IN
GENERAL.—A lender that receives a
guarantee issued under this section on a bond or note
shall pay a fee to the Secretary.
‘‘(2) AMOUNT.—The amount of an annual fee
paid for the guarantee of a bond or note under this
section shall be equal to 30 basis points of the amount
of the unpaid principal of the bond or note guaran-
teed under this section.
‘‘(3) PAYMENT.—A lender shall pay the fees re-
quired under this subsection on a semiannual basis.
‘‘(4) RURAL
ECONOMIC
DEVELOPMENT
SUB-
ACCOUNT.—Subject to subsection (e)(2), fees collected
under this subsection shall be—
‘‘(A) deposited into the rural economic de-
velopment subaccount maintained under section
313(b)(2)(A), to remain available until ex-
pended; and
‘‘(B) used for the purposes described in sec-
tion 313(b)(2)(B).
‘‘(d) GUARANTEES.—
‘‘(1) IN
GENERAL.—A guarantee issued under
this section shall—
‘‘(A) be for the full amount of a bond or
note, including the amount of principal, interest,
and call premiums;
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‘‘(B) be fully assignable and transferable;
and
‘‘(C) represent the full faith and credit of
the United States.
‘‘(2) LIMITATION.—To ensure that the Secretary
has the resources necessary to properly examine the
proposed guarantees, the Secretary may limit the
number of guarantees issued under this section if the
number of such guarantees exceeds 5 per year.
‘‘(3) DEPARTMENT OPINION.—On the timely re-
quest of an eligible lender, the General Counsel of the
Department of Agriculture shall provide the Secretary
with an opinion regarding the validity and authority
of a guarantee issued to the lender under this section.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated such sums as are necessary to carry out
this section.
‘‘(2) FEES.—To the extent that the amount of
funds appropriated for a fiscal year under paragraph
(1) are not sufficient to carry out this section, the
Secretary may use up to 1⁄3 of the fees collected under
subsection (c) for the cost of providing guarantees of
bonds and notes under this section before depositing
the remainder of the fees into the rural economic de-
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velopment subaccount maintained under section
313(b)(2)(A).
‘‘(f) TERMINATION.—The authority provided under
this section shall terminate on September 30, 2006.’’.
(b) ADMINISTRATION.—
(1) REGULATIONS.—Not later than 180 days
after the date of enactment of this Act, the Secretary
of Agriculture shall promulgate regulations to carry
out the amendments made by this section.
(2) IMPLEMENTATION.—Not later than 240 days
after the date of enactment of this Act, the Secretary
shall implement the amendment made by this section.
SEC. 662. EXPANSION OF 911 ACCESS.
Title III of the Rural Electrification Act of 1936 (7
U.S.C. 931 et seq.) is amended by adding the following:
‘‘SEC. 315. EXPANSION OF 911 ACCESS.
‘‘(a) IN GENERAL.—Subject to such terms and condi-
tions as the Secretary may prescribe, the Secretary may
make telephone loans under this title to State or local gov-
ernments, Indian tribes (as defined in section 4 of the In-
dian Self-Determination and Education Assistance Act (25
U.S.C. 450b)), or other public entities for facilities and
equipment to expand 911 access in underserved rural areas.
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‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as are nec-
essary to carry out this section.’’.
TITLE VII—AGRICULTURAL RE-
SEARCH, 
EDUCATION, 
AND
EXTENSION 
AND 
RELATED
MATTERS
Subtitle A—National Agricultural
Research, Extension, and Teach-
ing Policy Act of 1977
SEC. 701. DEFINITIONS.
(a) IN GENERAL.—Section 1404 of the National Agri-
cultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103) is amended—
(1) by redesignating paragraphs (10) through
(17) as paragraphs (11) through (18), respectively;
(2) by inserting after paragraph (9) the fol-
lowing:
‘‘(10) INSULAR AREA.—The term ‘insular area’
means—
‘‘(A) the Commonwealth of Puerto Rico;
‘‘(B) Guam;
‘‘(C) American Samoa;
‘‘(D) the Commonwealth of the Northern
Mariana Islands;
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‘‘(E) the Federated States of Micronesia;
‘‘(F) the Republic of the Marshall Islands;
‘‘(G) the Republic of Palau; and
‘‘(H) the Virgin Islands of the United
States.’’; and
(3) by striking paragraph (13) (as so redesig-
nated) and inserting the following:
‘‘(13) STATE.—The term ‘State’ means—
‘‘(A) a State;
‘‘(B) the District of Columbia; and
‘‘(C) any insular area.’’.
(b) EFFECT
OF
AMENDMENTS.—The amendments
made by subsection (a) shall not affect any basis for dis-
tribution of funds by formula (in effect on the date of enact-
ment of this Act) to—
(1) the Federated States of Micronesia;
(2) the Republic of the Marshall Islands; or
(3) the Republic of Palau.
SEC. 702. NATIONAL AGRICULTURAL RESEARCH, EXTEN-
SION, EDUCATION, AND ECONOMICS ADVI-
SORY BOARD.
Section 1408(h) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123(h)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
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SEC. 703. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRI-
CULTURAL SCIENCES EDUCATION.
Section 1417 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ after ‘‘economics,’’;
and
(B) by inserting ‘‘, and rural economic,
community, and business development’’ before
the period;
(2) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘, or in
rural economic, community, and business devel-
opment’’ before the semicolon;
(B) in paragraph (2), by inserting ‘‘, or in
rural economic, community, and business devel-
opment’’ before the semicolon;
(C) in paragraph (3), by inserting ‘‘, or
teaching programs emphasizing rural economic,
community, and business development’’ before
the semicolon;
(D) in paragraph (4), by inserting ‘‘, or
programs emphasizing rural economic, commu-
nity, and business development,’’ after ‘‘pro-
grams’’; and
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(E) in paragraph (5), by inserting ‘‘, or
professionals in rural economic, community, and
business development’’ before the semicolon;
(3) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘, or in
rural economic, community, and business devel-
opment,’’ after ‘‘sciences’’; and
(B) in paragraph (2), by inserting ‘‘, or in
the rural economic, community, and business de-
velopment workforce,’’ after ‘‘workforce’’; and
(4) in subsection (l), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PRO-
GRAM.
The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after
section 1417 (7 U.S.C. 3152) the following:
‘‘SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT
PROGRAM.
‘‘(a) AUTHORITY.—The Secretary may award grants
to eligible institutions on a competitive basis for the con-
struction, acquisition, modernization, renovation, alter-
ation, and remodeling of food and agricultural research fa-
cilities such as buildings, laboratories, and other capital fa-
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cilities (including acquisition of fixtures and equipment)
in accordance with this section.
‘‘(b) ELIGIBLE INSTITUTIONS.—The following institu-
tions are eligible to compete for grants under subsection (a):
‘‘(1) A State cooperative institution.
‘‘(2) A Hispanic-serving institution.
‘‘(c) CRITERIA
FOR AWARD.—The Secretary shall
award grants to support the national research purposes
specified in section 1402 in a manner determined by the
Secretary.
‘‘(d) MATCHING.—
‘‘(1) IN GENERAL.—The Secretary may establish
such matching requirements for grants under sub-
section (a) as the Secretary considers appropriate.
‘‘(2) FORM OF MATCH.—Matching requirements
established by the Secretary may be met with unreim-
bursed indirect costs and in-kind contributions.
‘‘(3) EVALUATION PREFERENCE.—The Secretary
may include an evaluation preference for projects for
which the applicant proposes funds for the direct costs
of a project to meet the required match.
‘‘(e) TARGETED INSTITUTIONS.—The Secretary may
determine that a portion of funds made available to carry
out this section shall be targeted to particular eligible insti-
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tutions to enhance the capacity of the eligible institutions
to carry out research.
‘‘(f) ADMINISTRATION.—
‘‘(1) REGULATIONS.—The Secretary shall pro-
mulgate such regulations as are necessary to carry
out this section.
‘‘(2) STATES WITH MORE THAN 1 ELIGIBLE IN-
STITUTION.—In a State having more than 1 eligible
institution, the Secretary shall establish procedures in
accordance with the purposes specified in section 1402
to ensure that the facility proposals of the eligible in-
stitutions in the State provide for a coordinated food
and agricultural research program among eligible in-
stitutions in the State.
‘‘(g) APPLICABILITY OF THE FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5
U.S.C. App.) and title XVIII of the Food and Agriculture
Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a
panel or board created solely for the purpose of reviewing
applications or proposals submitted under this section.
‘‘(h) ADVISORY BOARD.—In carrying out this section,
the Secretary shall consult with the Advisory Board.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
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to carry out this section for each of fiscal years 2002
through 2006.’’.
SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION
AND MARKETING OF ALCOHOLS AND INDUS-
TRIAL 
HYDROCARBONS 
FROM 
AGRICUL-
TURAL COMMODITIES AND FOREST PROD-
UCTS.
Section 1419(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3154(d)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
SEC. 706. POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3155) is amended—
(1) in subsection (c)(3), by striking ‘‘collect and
analyze’’ and inserting ‘‘collect, analyze, and dissemi-
nate’’; and
(2) in subsection (d), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 707. HUMAN NUTRITION INTERVENTION AND HEALTH
PROMOTION RESEARCH PROGRAM.
Section 1424(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
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3174(d)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
SEC. 708. PILOT RESEARCH PROGRAM TO COMBINE MED-
ICAL AND AGRICULTURAL RESEARCH.
Section 1424A(d) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3174a(d)) is amended by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 709. NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3175(c)(3)) is amended by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 710. ANIMAL HEALTH AND DISEASE RESEARCH PRO-
GRAMS.
Section 1433(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3195(a)) is amended in the first sentence by striking
‘‘2002’’ and inserting ‘‘2006’’.
SEC. 711. RESEARCH ON NATIONAL OR REGIONAL PROB-
LEMS.
Section 1434(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3196(a)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
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SEC. 712. EDUCATION GRANTS PROGRAMS FOR HISPANIC-
SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3241(c)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
SEC. 713. COMPETITIVE GRANTS FOR INTERNATIONAL AG-
RICULTURAL SCIENCE AND EDUCATION PRO-
GRAMS.
Section 1459A(c) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3292b(c)) is amended by striking ‘‘2002’’ and insert-
ing ‘‘2006’’.
SEC. 714. INDIRECT COSTS.
Section 1462 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3310) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘Except’’;
(2) by striking ‘‘19 percent’’ and all that follows
and inserting ‘‘the negotiated indirect cost rate estab-
lished for an institution by the cognizant Federal
audit agency for the institution.’’; and
(3) by adding at the end the following:
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‘‘(b) EXCEPTION.—Subsection (a) shall not apply to
a grant awarded competitively under section 9 of the Small
Business Act (15 U.S.C. 638).’’.
SEC. 715. RESEARCH EQUIPMENT GRANTS.
The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after
section 1462 (7 U.S.C. 3310) the following:
‘‘SEC. 1462A. RESEARCH EQUIPMENT GRANTS.
‘‘(a) IN GENERAL.—The Secretary may make competi-
tive grants for the acquisition of special purpose scientific
research equipment for use in the food and agricultural
sciences programs of eligible institutions described in sub-
section (b).
‘‘(b) ELIGIBLE INSTITUTIONS.—The Secretary may
make a grant under this section to—
‘‘(1) a college or university; or
‘‘(2) a State cooperative institution.
‘‘(c) MAXIMUM AMOUNT.—The amount of a grant
made to an eligible institution under this section may not
exceed $500,000.
‘‘(d) PROHIBITION ON CHARGE OF EQUIPMENT AS IN-
DIRECT COSTS.—The cost of acquisition or depreciation of
equipment purchased with a grant under this section shall
not be—
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‘‘(1) charged as an indirect cost against another
Federal grant; or
‘‘(2) included as part of the indirect cost pool for
purposes of calculating the indirect cost rate of an eli-
gible institution.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$50,000,000 for each of fiscal years 2002 through 2006.’’.
SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.
Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3311) is amended—
(1) in subsection (a), by striking ‘‘$850,000,000
for each of the fiscal years 1991 through 2002’’ and
inserting ‘‘$1,500,000,000 for each of fiscal years
2002 through 2006’’; and
(2) in subsection (b), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 717. EXTENSION EDUCATION.
Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3312) is amended by striking ‘‘$420,000,000’’ and all that
follows and inserting the following: ‘‘$500,000,000 for each
of fiscal years 2002 through 2006.’’.
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SEC. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.
The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after
section 1469 (7 U.S.C. 3315) the following:
‘‘SEC. 
1469A. 
AVAILABILITY 
OF 
COMPETITIVE 
GRANT
FUNDS.
‘‘Except as otherwise provided by law, funds made
available to the Secretary to carry out a competitive agri-
cultural research, education, or extension grant program
under this or any other Act shall be available for obligation
for a 2-year period beginning on October 1 of the fiscal year
for which the funds are made available.’’.
SEC. 719. JOINT REQUESTS FOR PROPOSALS.
(a) PURPOSES.—The purposes of this section are—
(1) to reduce the duplication of administrative
functions relating to grant awards and administra-
tion among Federal agencies conducting similar types
of research, education, and extension programs;
(2) to maximize the use of peer review resources
in research, education, and extension programs; and
(3) to reduce the burden on potential recipients
that may offer similar proposals to receive competi-
tive grants under different Federal programs in over-
lapping subject areas.
(b) AUTHORITY.—The National Agricultural Research,
Extension, and Teaching Policy Act of 1977 is amended
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by inserting after section 1473A (7 U.S.C. 3319a) the fol-
lowing:
‘‘SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.
‘‘(a) IN GENERAL.—In carrying out any competitive
agricultural research, education, or extension grant pro-
gram authorized under this or any other Act, the Secretary
may cooperate with 1 or more other Federal agencies (in-
cluding the National Science Foundation) in issuing joint
requests for proposals, awarding grants, and administering
grants, for similar or related research, education, or exten-
sion projects or activities.
‘‘(b) TRANSFER OF FUNDS.—
‘‘(1) SECRETARY.—The Secretary may transfer
funds to, or receive funds from, a cooperating Federal
agency for the purpose of carrying out the joint re-
quest for proposals, making awards, or administering
grants.
‘‘(2) COOPERATING
AGENCY.—The cooperating
Federal agency may transfer funds to, or receive
funds from, the Secretary for the purpose of carrying
out the joint request for proposals, making awards, or
administering grants.
‘‘(3) LIMITATIONS.—Funds transferred or re-
ceived under this subsection shall be—
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‘‘(A) used only in accordance with the laws
authorizing the appropriation of the funds; and
‘‘(B) made available by grant only to re-
cipients that are eligible to receive the grant
under the laws.
‘‘(c) ADMINISTRATION.—
‘‘(1) SECRETARY.—The Secretary may delegate
authority to issue requests for proposals, make grant
awards, or administer grants, in whole or in part, to
a cooperating Federal agency.
‘‘(2) COOPERATING FEDERAL AGENCY.—The co-
operating Federal agency may delegate to the Sec-
retary authority to issue requests for proposals, make
grant awards, or administer grants, in whole or in
part.
‘‘(d) REGULATIONS; RATES.—The Secretary and a co-
operating Federal agency may agree to make applicable to
recipients of grants—
‘‘(1) the post-award grant administration regu-
lations and indirect cost rates applicable to recipients
of grants from the Secretary; or
‘‘(2) the post-award grant administration regu-
lations and indirect cost rates applicable to recipients
of grants from the cooperating Federal agency.
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‘‘(e) JOINT PEER REVIEW PANELS.—Subject to section
1413B, the Secretary and a cooperating Federal agency
may establish joint peer review panels for the purpose of
evaluating grant proposals.’’.
SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(a)) is amended by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 721. AQUACULTURE.
Section 1477 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3324) is amended in the first sentence by striking ‘‘2002’’
and inserting ‘‘2006’’.
SEC. 722. RANGELAND RESEARCH.
Section 1483(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3336(a)) is amended by striking ‘‘2002’’ and inserting
‘‘2006’’.
SEC. 723. BIOSECURITY PLANNING AND RESPONSE PRO-
GRAMS.
(a) IN GENERAL.—The National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3101 et seq.) is amended by adding at the end the
following:
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‘‘Subtitle N—Biosecurity
‘‘CHAPTER 1—AGRICULTURE
INFRASTRUCTURE SECURITY
‘‘SEC. 1484. DEFINITIONS.
‘‘In this chapter:
‘‘(1) AGRICULTURAL RESEARCH FACILITY.—The
term 
‘agricultural 
research 
facility’ 
means 
a
facility—
‘‘(A) at which agricultural research is regu-
larly carried out or proposed to be carried out;
and
‘‘(B) that is—
‘‘(i)(I) an Agricultural Research Serv-
ice facility;
‘‘(II) a Forest Service facility; or
‘‘(III) an Animal and Plant Health
Inspection Service facility;
‘‘(ii) a Federal agricultural facility in
the process of being planned or being con-
structed; or
‘‘(iii) any other facility under the full
control of the Secretary.
‘‘(2) 
COMMISSION.—The 
term 
‘Commission’
means the Agriculture Infrastructure Security Com-
mission established under section 1486.
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‘‘(2) FUND.—The term ‘Fund’ means the Agri-
culture Infrastructure Security Fund Account estab-
lished by section 1485.
‘‘SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY
FUND.
‘‘(a) ESTABLISHMENT.—There is established in the
Treasury of the United States an account, to be known as
the ‘Agriculture Infrastructure Security Fund Account’,
consisting of funds appropriated to, or deposited into, the
Fund under subsection (c).
‘‘(b) PURPOSES.—The purposes of the Fund are to pro-
vide funding to protect and strengthen the Federal food safe-
ty and agricultural infrastructure that—
‘‘(1) safeguards against animal and plant dis-
eases and pests;
‘‘(2) ensures the safety of the food supply; and
‘‘(3) ensures sound science in support of food and
agricultural policy.
‘‘(c) DEPOSITS INTO FUND.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the Fund such sums as are necessary
for each of fiscal years 2002 through 2006.
‘‘(2) CONTRIBUTIONS AND OTHER PROCEEDS.—
The Secretary shall deposit into the Fund any funds
received—
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‘‘(A) as proceeds from the sale of assets
under subsection (e); or
‘‘(B) as gifts under subsection (f).
‘‘(3) AVAILABILITY OF FUNDS.—Amounts in the
Fund shall remain available until expended without
further Act of appropriation.
‘‘(4) ADDITIONAL FUNDS.—Funds made avail-
able under paragraph (1) shall be in addition to
funds otherwise available to the Secretary to receive
gifts and bequests or dispose of property (real, per-
sonal, or intangible).
‘‘(d) EXPENDITURES FROM FUND.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), on
request by the Secretary, the Secretary of the Treas-
ury shall transfer from the Fund to the Secretary,
and the Secretary shall accept and use without fur-
ther appropriation, such amounts as the Secretary de-
termines to be necessary to pay—
‘‘(A) the costs of planning, design, develop-
ment, construction, acquisition, modernization,
leasing, and disposal of facilities, equipment,
and technology used by the Department in car-
rying out programs relating to the purposes
specified in subsection (b), notwithstanding the
Federal Property and Administrative Services
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Act of 1949 (40 U.S.C. 471 et seq.) or any other
law that prescribes procedures for the procure-
ment, use, or disposal of property or services by
a Federal agency;
‘‘(B) the costs of specialized services relating
to the purposes specified in subsection (b);
‘‘(C) the costs of cooperative arrangements
authorized to be entered into (notwithstanding
chapter 63 of title 31, United States Code) with
State, local and tribal governments, and other
public and private entities, to carry out pro-
grams relating to the purposes specified in sub-
section (b); and
‘‘(D) administrative costs incurred in car-
rying out subparagraphs (A) through (C).
‘‘(2) LIMITATIONS.—
‘‘(A) FEDERAL
EMPLOYEES.—Amounts in
the Fund shall not be used to create any new full
or part-time permanent Federal employee posi-
tion.
‘‘(B) ADMINISTRATIVE
EXPENSES.—Begin-
ning in fiscal year 2003, not more than 1 per-
cent of the amounts in the Fund on October 1 of
a fiscal year may be used in the fiscal year for
administrative expenses of the Secretary in car-
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rying out the activities described in paragraph
(1).
‘‘(e) SALE OF ASSETS.—
‘‘(1) DISPOSAL
AUTHORITY.—Notwithstanding
the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 471 et seq.), the Secretary by sale
may dispose of all or any part of any right or title
in land (excluding National Forest System land), fa-
cilities, or equipment in the full control of the Depart-
ment used for the purposes specified in subsection (b).
‘‘(2) DISPOSITION OF PROCEEDS.—Proceeds from
any sale conducted by the Secretary under paragraph
(1) shall be deposited into the Fund in accordance
with subsection (c)(2)(A).
‘‘(f) GIFTS.—
‘‘(1) IN GENERAL.—To carry out the purposes
specified in subsection (b), the Secretary may accept
gifts and bequests of funds, property (real, personal,
and intangible), equipment, services, and other in-
kind contributions from State, local, and tribal gov-
ernments, colleges and universities, individuals, and
other public and private entities.
‘‘(2) PROHIBITED SOURCE.—
‘‘(A) IN GENERAL.—For the purposes of this
subsection, the Secretary shall not consider a
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State or local government, Indian tribe (as de-
fined in section 4 of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C.
450b)), other public entity, or college or univer-
sity, to be a prohibited source under any Depart-
ment rule or policy that prohibits the acceptance
of gifts from individuals and entities that do
business with the Department.
‘‘(B) 
EXCEPTION.—Notwithstanding 
any
Department rule or policy that prohibits the ac-
ceptance of gifts by the Department from indi-
viduals or private entities that do business with
the Department or that, for any other reason, are
considered to be prohibited sources, the Secretary
may accept gifts under this subsection if the Sec-
retary determines that it is in the public interest
to accept the gift.
‘‘(3) DISPOSITION
OF
GIFTS.—The Secretary
shall deposit any gift of funds under this subsection
into the Fund in accordance with subsection
(c)(2)(B).
‘‘SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY
COMMISSION.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
a commission to be known as the ‘Agriculture Infrastruc-
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ture Security Commission’ to carry out the duties described
in subsection (f).
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—
‘‘(A) VOTING MEMBERS.—
‘‘(i) IN
GENERAL.—The Commission
shall be composed of 15 voting members, ap-
pointed by the Secretary in accordance with
clause (ii), based on nominations solicited
from the public.
‘‘(ii) QUALIFICATIONS.—The Secretary
shall appoint members that—
‘‘(I) represent a balance of the
public and private sectors; and
‘‘(II) have combined expertise
in—
‘‘(aa) facilities development,
modernization, construction, secu-
rity, consolidation, and closure;
‘‘(bb) 
plant 
diseases 
and
pests;
‘‘(cc) animal diseases and
pests;
‘‘(dd) food safety;
‘‘(ee) biosecurity;
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‘‘(ff) the needs of farmers and
ranchers;
‘‘(gg) public health;
‘‘(hh) State, local, and tribal
government; and
‘‘(ii) any other area related
to agriculture infrastructure secu-
rity, as determined by the Sec-
retary.
‘‘(B) NONVOTING MEMBERS.—The Commis-
sion shall be composed of the following nonvoting
members:
‘‘(i) The Secretary.
‘‘(ii) 4 representatives appointed by the
Secretary of Health and Human Services, 1
each from—
‘‘(I) the Public Health Service;
‘‘(II) the National Institutes of
Health;
‘‘(III) the Centers for Disease
Control and Prevention; and
‘‘(IV) the Food and Drug Admin-
istration.
‘‘(iii) 1 representative appointed by the
Attorney General.
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‘‘(iv) 1 representative appointed by the
Director of Homeland Security.
‘‘(v) Not more than 4 representatives of
the Department appointed by the Secretary.
‘‘(2) DATE OF APPOINTMENT.—The appointment
of each member of the Commission shall be made not
later than 90 days after the date of enactment of this
subtitle.
‘‘(c) TERM; VACANCIES.—
‘‘(1) TERM.—The term of office of a member of
the Commission shall be 4 years, except that the mem-
bers initially appointed shall be appointed to serve
staggered terms (as determined by the Secretary).
‘‘(2) VACANCIES.—A vacancy on the Commission
shall be filled in the same manner as the original ap-
pointment was made.
‘‘(d) MEETINGS.—
‘‘(1) IN GENERAL.—The Commission shall meet
at the call of—
‘‘(A) the Chairperson;
‘‘(B) a majority of the voting members of
the Commission; or
‘‘(C) the Secretary.
‘‘(2) FEDERAL ADVISORY COMMITTEE ACT.—
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‘‘(A) IN GENERAL.—The Federal Advisory
Committee Act (5 U.S.C. App.) and title XVIII
of the Food and Agriculture Act of 1977 (7
U.S.C. 2281 et seq.) shall not apply to the Com-
mission.
‘‘(B) OPEN MEETINGS; RECORDS.—Subject
to subparagraph (C)—
‘‘(i) a meeting of the Commission shall
be—
‘‘(I) publicly announced in ad-
vance; and
‘‘(II) open to the public; and
‘‘(ii) the Commission shall—
‘‘(I) keep detailed minutes of each
meeting and other appropriate records
of the activities of the Commission;
and
‘‘(II) make the minutes and
records available to the public on re-
quest.
‘‘(C) EXCEPTION.—When required in the
interest of national security—
‘‘(i) the Chairperson may choose not to
give public notice of a meeting;
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‘‘(ii) the Chairperson may close all or
a portion of any meeting to the public, and
the minutes of the meeting, or portion of a
meeting, shall not be made available to the
public; and
‘‘(iii) by majority vote, the Commis-
sion may redact the minutes of a meeting
that was open to the public.
‘‘(e) CHAIRPERSON.—The Secretary shall select a
Chairperson from among the voting members of the Com-
mission.
‘‘(f) DUTIES.—
‘‘(1) IN GENERAL.—The Commission shall—
‘‘(A) advise the Secretary on the uses of the
Fund;
‘‘(B) review all agricultural research facili-
ties for—
‘‘(i) research importance; and
‘‘(ii) importance to agriculture infra-
structure security;
‘‘(C) identify any agricultural research fa-
cility that should be closed, realigned, consoli-
dated, or modernized to carry out the research
agenda of the Secretary and protect agriculture
infrastructure security;
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‘‘(D) develop recommendations concerning
agricultural research facilities; and
‘‘(E)(i) evaluate the agricultural research
facilities acquisition and modernization system
(including acquisitions by gift, grant, or any
other form of agreement) used by the Depart-
ment; and
‘‘(ii) based on the evaluation, recommend
improvements to the system.
‘‘(2) STRATEGIC PLAN.—To assist the Commis-
sion in carrying out the duties described in para-
graph (1), the Commission shall use the 10-year stra-
tegic plan prepared by the Strategic Planning Task
Force established under section 4 of the Research Fa-
cilities Act (7 U.S.C. 390b).
‘‘(3) REPORT.—
‘‘(A) IN
GENERAL.—Not later than 240
days after the date of enactment of this subtitle,
and each June 1 thereafter, the Commission shall
prepare and submit to the Secretary, the Com-
mittee on Agriculture and the Committee on Ap-
propriations of the House of Representatives,
and the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Appropria-
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tions of the Senate, a report on the findings and
recommendations under paragraph (1).
‘‘(B) WRITTEN RESPONSE.—Not later than
90 days after the date of receipt of a report from
the Commission under subparagraph (A), the
Secretary shall provide to the Commission a
written response concerning the manner and ex-
tent to which the Secretary will implement the
recommendations in the report.
‘‘(C) PUBLIC AVAILABILITY.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the report submitted by the Commis-
sion, and any response made by the Sec-
retary, under this subsection shall be avail-
able to the public.
‘‘(ii) EXCEPTION.—
‘‘(I) NATIONAL
SECURITY.—The
Commission or the Secretary may de-
termine that any report or response, or
any portion of a report or response,
shall not be publicly released in the in-
terest of national security.
‘‘(II) FREEDOM OF INFORMATION
ACT.—On such a determination, the re-
port or response, a portion of the re-
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port or response, or any records relat-
ing to the report or response, shall not
be released under section 552 of title 5,
United States Code.
‘‘(g) COMMISSION PERSONNEL MATTERS.—
‘‘(1) COMPENSATION OF MEMBERS.—
‘‘(A) NON-FEDERAL EMPLOYEES.—A voting
member of the Commission who is not a regular
full-time employee of the Federal Government
shall, while attending meetings of the Commis-
sion or otherwise engaged in the business of the
Commission (including travel time), be entitled
to receive compensation at a rate fixed by the
Secretary, but not exceeding the daily equivalent
of the annual rate specified at the time of such
service under GS–15 of the General Schedule es-
tablished under section 5332 of title 5, United
States Code.
‘‘(B) TRAVEL EXPENSES.—A voting member
of the Commission shall be allowed travel ex-
penses, including per diem in lieu of subsistence,
at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5,
United States Code, while away from the home
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or regular place of business of the member in the
performance of the duties of the Commission.
‘‘(2) STAFF.—The Secretary shall provide the
Commission with any personnel and other resources
as the Secretary determines appropriate.
‘‘(h) FUNDING.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this section such sums as are necessary for each of fis-
cal years 2002 through 2006.
‘‘(2) AGRICULTURE INFRASTRUCTURE SECURITY
FUND.—For the purpose of establishing the Commis-
sion, the Secretary shall use such sums from the Fund
as the Secretary determines to be appropriate.
‘‘CHAPTER 2—OTHER BIOSECURITY
PROGRAMS
‘‘SEC. 1487. SPECIAL AUTHORIZATION FOR BIOSECURITY
PLANNING AND RESPONSE.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts for agricultural research, extension, and
education under this Act, there are authorized to be appro-
priated for agricultural research, education, and extension
activities for biosecurity planning and response such sums
as are necessary for each of fiscal years 2002 through 2006.
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‘‘(b) USE OF FUNDS.—Using any authority available
to the Secretary, the Secretary shall use funds made avail-
able under this section to carry out agricultural research,
education, and extension activities (including through com-
petitive grants) necessary—
‘‘(1) to reduce the vulnerability of the United
States food and agricultural system to chemical or bi-
ological attack;
‘‘(2) to continue joint research initiatives be-
tween the Agricultural Research Service, universities,
and industry on counterbioterrorism efforts (includ-
ing continued funding of a consortium in existence on
the date of enactment of this subtitle of which the Ag-
ricultural Research Service and universities are mem-
bers);
‘‘(3) to make competitive grants to universities
and qualified research institutions for research on
counterbioterrorism; and
‘‘(4) to counter or otherwise respond to chemical
or biological attack.
‘‘SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FA-
CILITIES.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) CONSTRUCTION.—The term ‘construction’
includes—
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‘‘(A) the construction of new buildings; and
‘‘(B) the expansion, renovation, remodeling,
and alteration of existing buildings.
‘‘(2) COST.—
‘‘(A) IN GENERAL.—The term ‘cost’ means
any construction cost, including architects’ fees.
‘‘(B) EXCLUSIONS.—The term ‘cost’ does
not include the cost of—
‘‘(i) acquiring land or an interest in
land; or
‘‘(ii) constructing any offsite improve-
ment.
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means a college or university that—
‘‘(A) is a land grant college or university
(as defined in section 1404 of the National Agri-
cultural Research, Extension, and Teaching Pol-
icy Act of 1977 (7 U.S.C. 3103)); and
‘‘(B) as determined by the Secretary, has—
‘‘(i) demonstrated expertise in the area
of animal and plant diseases;
‘‘(ii) substantial animal and plant di-
agnostic laboratories; and
‘‘(iii) well-established working relation-
ships with—
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‘‘(I) the agricultural industry;
and
‘‘(II) farm and commodity orga-
nizations.
‘‘(b) MODERNIZATION AND CONSTRUCTION OF FACILI-
TIES.—
‘‘(1) IN GENERAL.—To enhance the security of
agriculture in the United States against threats posed
by bioterrorism, the Secretary shall make construction
grants, on a competitive basis, to eligible entities.
‘‘(2) LIMITATION ON GRANTS.—An eligible entity
shall not receive grant funds under this section that,
in any fiscal year, exceed $10,000,000.
‘‘(c) REQUIREMENTS FOR GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a
grant to an eligible entity under this section only if,
with respect to any facility constructed using grant
funds, the eligible entity—
‘‘(A) submits to the Secretary, in such form,
in such manner, and containing such agree-
ments, assurances, and information as the Sec-
retary may require, an application for the grant;
‘‘(B) is determined by the Secretary to be
competent to engage in the type of research for
which the facility is proposed to be constructed;
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‘‘(C) provides such assurances as the Sec-
retary determines to be satisfactory that—
‘‘(i) for not less than 20 years after the
date of completion of the facility, the facil-
ity shall be used for the purposes of the re-
search for which the facility was con-
structed, as described in the grant applica-
tion;
‘‘(ii) sufficient funds are available to
pay the non-Federal share of the cost of con-
structing the facility;
‘‘(iii) sufficient funds will be available,
as of the date of completion of the construc-
tion, for the effective use of the facility for
the purposes of the research for which the
facility was constructed; and
‘‘(iv) the proposed construction—
‘‘(I) will increase the capability of
the eligible entity to conduct research
for which the facility was constructed;
or
‘‘(II) is necessary to improve or
maintain the quality of the research of
the eligible entity;
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‘‘(D) meets such reasonable qualifications as
may be established by the Secretary with respect
to—
‘‘(i) the relative scientific and technical
merit of the applications, and the relative
effectiveness of facilities proposed to be con-
structed, in expanding the quality of, and
the capacity of eligible entities to carry out,
biosecurity research;
‘‘(ii) the quality of the research to be
carried out in each facility constructed;
‘‘(iii) the need for the research activi-
ties to be carried out within the facility as
those activities relate to research needs of
the United States in securing, and ensuring
the safety of, the food supply of the United
States;
‘‘(iv) the age and condition of existing
research facilities of the eligible entity; and
‘‘(v) biosafety and biosecurity require-
ments necessary to protect facility staff,
members of the public, and the food supply;
and
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‘‘(E) has demonstrated a commitment to en-
hancing and expanding the research productivity
of the eligible entity.
‘‘(2) PRIORITY.—In providing grants under this
section, the Secretary shall give priority to an eligible
entity that, as determined by the Secretary, has dem-
onstrated expertise in—
‘‘(A) animal and plant disease prevention;
‘‘(B) pathogen and toxin mitigation;
‘‘(C) cereal disease resistance;
‘‘(D) grain milling and processing;
‘‘(E) livestock production practices;
‘‘(F) vaccine development;
‘‘(G) meat processing;
‘‘(H) pathogen detection and control; or
‘‘(I) food safety.
‘‘(d) AMOUNT OF GRANT.—The amount of a grant
awarded under this section shall be determined by the Sec-
retary.
‘‘(e) FEDERAL SHARE.—The Federal share of the cost
of any construction carried out using funds from a grant
provided under this section shall not exceed 50 percent.
‘‘(f) GUIDELINES.—Not later than 180 days after the
date of enactment of this subtitle, the Secretary shall issue
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guidelines with respect to the provision of grants under this
section.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$100,000,000 for each of fiscal years 2003 through 2005.’’.
(b) SENSE OF CONGRESS ON INCREASING CAPACITY
FOR RESEARCH ON BIOSECURITY AND ANIMAL AND PLANT
HEALTH DISEASES.—It is the sense of Congress that fund-
ing for the Agricultural Research Service, the Animal and
Plant Health Inspection Service, and other agencies of the
Department of Agriculture with responsibilities for biosecu-
rity should be increased as necessary to improve the capac-
ity of the agencies to conduct research and analysis of, and
respond to, bioterrorism and animal and plant diseases.
Subtitle B—Food, Agriculture, Con-
servation, and Trade Act of 1990
SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by
striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.
Section 1668 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5921) is amended—
(1) by redesignating subsections (e) through (g)
as subsections (f) through (h), respectively;
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(2) by inserting after subsection (d) the fol-
lowing:
‘‘(e) GRANT PRIORITY.—In selecting projects for which
grants shall be made under this section, the Secretary shall
give priority to public and private research or educational
institutions and organizations the goals of which include—
‘‘(1) formation of interdisciplinary teams to re-
view or conduct research on the environmental effects
of the release of new genetically modified agricultural
products;
‘‘(2) conduct of studies relating to biosafety of ge-
netically modified agricultural products;
‘‘(3) evaluation of the cost and benefit for devel-
opment of an identity preservation system for geneti-
cally modified agricultural products;
‘‘(4) establishment of international partnerships
for research and education on biosafety issues; or
‘‘(5) formation of interdisciplinary teams to
renew and conduct research on the nutritional en-
hancement and environmental benefits of genetically
modified agricultural products.’’; and
(3) in subsection (h) (as redesignated by para-
graph (1)), by striking paragraph (2) and inserting
the following:
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‘‘(2) WITHHOLDING OF OUTLAYS FOR RESEARCH
ON
BIOTECHNOLOGY
RISK
ASSESSMENT.—Of the
amounts of outlays made under this section or any
other provision of law to carry out research on bio-
technology (as defined and determined by the Sec-
retary of Agriculture) for any fiscal year, the Sec-
retary of Agriculture shall withhold at least 3 percent
for grants for research on biotechnology risk assess-
ment on all categories identified by the Secretary of
Agriculture as biotechnology.’’.
SEC. 733. RURAL ELECTRONIC COMMERCE EXTENSION PRO-
GRAM.
(a) FINDINGS.—Congress finds that—
(1) electronic commerce sales in 1998 were ap-
proximately $100,000,000,000 and are expected to
reach $1,300,000,000,000 by 2003;
(2) electronic commerce presents an enormous
opportunity and challenge for small businesses, espe-
cially businesses in rural areas;
(3) while infrastructure for electronic commerce
is growing rapidly in rural areas, small businesses
will not be able to take advantage of the new tech-
nology without assistance;
(4) while electronic commerce will give businesses
new markets and new ways of doing business, many
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small businesses in rural areas will have difficulty
adopting appropriate electronic commerce business
practices and technologies;
(5) the United States has an interest in ensuring
that small businesses in rural areas participate in
electronic commerce, to encourage success of the busi-
nesses, and to promote productivity and economic
growth throughout the economy of the United States;
and
(6) an electronic commerce extension program
should be established using the nationwide county-
based infrastructure within the Cooperative Extension
Service to help small businesses throughout the United
States to identify, adapt, adopt, and use electronic
commerce business practices and technologies.
(b) PURPOSE.—The purpose of this section is to estab-
lish within the Cooperative State Research, Education, and
Extension Service of the Department of Agriculture a rural
electronic commerce extension program for small businesses
and microenterprises in rural areas of the United States.
(c) PROGRAM.—Subtitle H of title XVI of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5921 et seq.) is amended by adding after section 1669 the
following:
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‘‘SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION
PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) DEVELOPMENT CENTER.—The term ‘devel-
opment center’ means—
‘‘(A) the North Central Regional Center for
Rural Development;
‘‘(B) the Northeast Regional Center for
Rural Development or its designee;
‘‘(C) the Southern Rural Development Cen-
ter; and
‘‘(D) the Western Rural Development Center
or its designee.
‘‘(2) EXTENSION PROGRAM.—The term ‘extension
program’ means the rural electronic commerce exten-
sion program established under subsection (b).
‘‘(3) MICROENTERPRISE.—The term ‘microenter-
prise’ means a commercial enterprise that has 5 or
fewer employees, 1 or more of whom owns the enter-
prise.
‘‘(4) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture, acting through the Ad-
ministrator of the Cooperative State Research, Edu-
cation, and Extension Service.
‘‘(5) SMALL BUSINESS.—The term ‘small busi-
ness’ has the meaning given the term ‘small-business
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concern’ by section 3(a) of the Small Business Act (15
U.S.C. 632(a)).
‘‘(b) ESTABLISHMENT.—The Secretary shall establish
a rural electronic commerce extension program to—
‘‘(1) expand and enhance electronic commerce
practices and technology to be used by small busi-
nesses and microenterprises in rural areas;
‘‘(2) disseminate information and expertise
through a cooperative extension service clearinghouse
system in rural areas;
‘‘(3) disseminate management, scientific, engi-
neering, and technical information to small businesses
in rural areas through the extension program; and
‘‘(4) use, when appropriate, the expertise, tech-
nology, and capabilities of other institutions and or-
ganizations, including—
‘‘(A) State and local governments;
‘‘(B) Federal departments and agencies;
‘‘(C) institutions of higher education;
‘‘(D) nonprofit organizations;
‘‘(E) small businesses and microenterprises
that have experience in electronic commerce
practice and technology; and
‘‘(F) the development centers.
‘‘(c) ADMINISTRATION.—
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‘‘(1) IN GENERAL.—In carrying out this section,
the Secretary shall—
‘‘(A) provide leadership, support, and co-
ordination for the extension programs;
‘‘(B) establish policies, practices, and proce-
dures to assist rural communities in the adop-
tion and use of electronic commerce techniques;
‘‘(C) identify and strengthen existing mech-
anisms designed to assist rural areas in the
adoption and use of electronic commerce tech-
niques;
‘‘(D) provide grants to fund projects and
activities under the extension program; and
‘‘(E) establish a clearinghouse system for
States, communities, and businesses to obtain in-
formation on best practices, technology transfer,
training, education, adoption, and use of elec-
tronic commerce in rural areas.
‘‘(2) OFFICE
OF
RURAL
ELECTRONIC
COM-
MERCE.—The Secretary shall establish, in the Cooper-
ative State Research, Education, and Extension Serv-
ice, an Office of Rural Electronic Commerce to assist
in carrying out this section.
‘‘(d) GRANTS.—
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‘‘(1) IN
GENERAL.—The Secretary shall carry
out a program under which—
‘‘(A) funds are distributed to each of the de-
velopment centers to—
‘‘(i) assemble regional expertise, and
develop innovative education programs, that
may be adapted and refined by State exten-
sion programs;
‘‘(ii) train State-based cooperative ex-
tension agents to deliver rural electronic
commerce education programs; and
‘‘(iii) establish networks among univer-
sities, local governments, and private indus-
tries to focus on regional economic issues;
and
‘‘(B) competitive grants are made to cooper-
ative extension service programs at land-grant
colleges and universities (or consortia of land-
grant colleges and universities)—
‘‘(i) to develop and facilitate nation-
ally innovative rural electronic commerce
business strategies; and
‘‘(ii) to assist small businesses and
microenterprises in identifying, adapting,
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implementing, and using electronic com-
merce business practices and technologies.
‘‘(2) ELIGIBILITY.—
‘‘(A) CRITERIA.—
‘‘(i) IN
GENERAL.—The Secretary,
shall—
‘‘(I) establish criteria for the sub-
mission, evaluation, and funding of
applications for grants to carry out
projects and activities under the exten-
sion program; and
‘‘(II) evaluate, rank, and select
grant applications described in sub-
clause (I) on the basis of the selection
criteria.
‘‘(ii) FACTORS.—The selection criteria
established under clause (i) shall include—
‘‘(I) the ability of an applicant to
provide training and education on best
practices, technology transfer, adop-
tion, and use of electronic commerce in
rural communities by small business
and microenterprise;
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‘‘(II) the quality of the service to
be provided by a proposed project or
activity under the extension program;
‘‘(III) the extent and geographic
diversity of the area served by the pro-
posed project or activity under the ex-
tension program;
‘‘(IV) the extent of participation
of land-grant colleges and universities
in the extension program (including
any economic benefits that would result
from that participation);
‘‘(V) the percentage of funding
and in-kind commitments from non-
Federal sources that would be needed
by and available for a proposed project
or activity under the extension pro-
gram; and
‘‘(VI) the extent of participation
of low-income and minority businesses
or microenterprises in a proposed
project or activity under the extension
program.
‘‘(B) APPLICATION.—As a condition of
being considered for the receipt of funds under
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this section, an applicant shall submit to the
Secretary an application that meets the criteria
established under subparagraph (A)(i)(I).
‘‘(C) NON-FEDERAL SHARE.—
‘‘(i) IN GENERAL.—As a condition of
the receipt of funds under this section, an
applicant shall agree to obtain from non-
Federal sources (including State, local, non-
profit, or private sector sources) contribu-
tions of—
‘‘(I) except as provided in clause
(iii), during each of the years in which
the extension program receives funding
under subsection (g), 50 percent of the
estimated capital and annual oper-
ating and maintenance costs of the ex-
tension program; and
‘‘(II) after expiration of the ini-
tial funding period specified in sub-
clause (I), 100 percent of the estimated
capital and annual operating and
maintenance costs of the extension pro-
gram.
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‘‘(ii) FORM.—The non-Federal share
required under clause (i)(I) may be pro-
vided in the form of in-kind contributions.
‘‘(iii) EXCEPTION.—The non-Federal
share required under clause (i)(I) may be
reduced to 25 percent of the estimated cap-
ital and annual operating and maintenance
costs of the extension program if the grant
recipient serves low-income or minority-
owned businesses or microenterprises, as de-
termined by the Secretary.
‘‘(3) LIMITATION ON AMOUNT OF FUNDS AWARD-
ED.—
‘‘(A) INDIVIDUAL
LAND-GRANT
COLLEGES
AND
UNIVERSITIES.—A land-grant college or
university shall not receive funds under this sec-
tion in an amount that exceeds $900,000.
‘‘(B) CONSORTIA OF LAND-GRANT COLLEGES
AND UNIVERSITIES.—With respect to a consor-
tium of land-grant colleges and universities that
receives funds under this section—
‘‘(i) the total amount of the funds
awarded to the consortium shall not exceed
the product obtained by multiplying—
‘‘(I) $900,000; by