H. R. 6124—415 
‘‘TITLE IX—ENERGY 
‘‘SEC. 9001. DEFINITIONS. 
‘‘Except as otherwise provided, in this title: 
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 
Administrator of the Environmental Protection Agency. 
‘‘(2) ADVISORY COMMITTEE.—The term ‘Advisory Committee’ 
means the Biomass Research and Development Technical 
Advisory Committee established by section 9008(d)(1). 
‘‘(3) ADVANCED BIOFUEL.— 
‘‘(A) IN GENERAL.—The term ‘advanced biofuel’ means 
fuel derived from renewable biomass other than corn kernel 
starch. 
‘‘(B) INCLUSIONS.—Subject to subparagraph (A), the 
term ‘advanced biofuel’ includes— 
‘‘(i) biofuel derived from cellulose, hemicellulose, 
or lignin; 
‘‘(ii) biofuel derived from sugar and starch (other 
than ethanol derived from corn kernel starch); 
‘‘(iii) biofuel derived from waste material, including 
crop residue, other vegetative waste material, animal 
waste, food waste, and yard waste; 
‘‘(iv) diesel-equivalent fuel derived from renewable 
biomass, including vegetable oil and animal fat; 
‘‘(v) biogas (including landfill gas and sewage waste 
treatment gas) produced through the conversion of 
organic matter from renewable biomass; 
‘‘(vi) butanol or other alcohols produced through 
the conversion of organic matter from renewable bio-
mass; and 
‘‘(vii) other fuel derived from cellulosic biomass. 
‘‘(4) BIOBASED
PRODUCT.—The term ‘biobased product’ 
means a product determined by the Secretary to be a commer-
cial or industrial product (other than food or feed) that is— 
‘‘(A) composed, in whole or in significant part, of 
biological products, including renewable domestic agricul-
tural materials and forestry materials; or 
‘‘(B) an intermediate ingredient or feedstock. 
‘‘(5) BIOFUEL.—The term ‘biofuel’ means a fuel derived 
from renewable biomass. 
‘‘(6) BIOMASS
CONVERSION
FACILITY.—The term ‘biomass 
conversion facility’ means a facility that converts or proposes 
to convert renewable biomass into— 
‘‘(A) heat; 
‘‘(B) power; 
‘‘(C) biobased products; or 
‘‘(D) advanced biofuels. 
‘‘(7) BIOREFINERY.—The term ‘biorefinery’ means a facility 
(including equipment and processes) that— 
‘‘(A) converts renewable biomass into biofuels and 
biobased products; and 
‘‘(B) may produce electricity. 
‘‘(8) BOARD.—The term ‘Board’ means the Biomass 
Research and Development Board established by section 
9008(c).
H. R. 6124—416 
‘‘(9) 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). 
‘‘(10) INSTITUTION
OF
HIGHER
EDUCATION.—The term 
‘institution of higher education’ has the meaning given the 
term in section 102(a) of the Higher Education Act of 1965 
(20 U.S.C. 1002(a)). 
‘‘(11) INTERMEDIATE INGREDIENT OR FEEDSTOCK.—The term 
‘intermediate ingredient or feedstock’ means a material or com-
pound made in whole or in significant part from biological 
products, including renewable agricultural materials (including 
plant, animal, and marine materials) or forestry materials, 
that are subsequently used to make a more complex compound 
or product. 
‘‘(12) RENEWABLE BIOMASS.—The term ‘renewable biomass’ 
means— 
‘‘(A) materials, pre-commercial thinnings, or invasive 
species from National Forest System land and public lands 
(as defined in section 103 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1702)) that— 
‘‘(i) are byproducts of preventive treatments that 
are removed— 
‘‘(I) to reduce hazardous fuels; 
‘‘(II) to reduce or contain disease or insect 
infestation; or 
‘‘(III) to restore ecosystem health; 
‘‘(ii) would not otherwise be used for higher-value 
products; and 
‘‘(iii) are harvested in accordance with— 
‘‘(I) applicable law and land management 
plans; and 
‘‘(II) the requirements for— 
‘‘(aa) old-growth maintenance, restoration, 
and management direction of paragraphs (2), 
(3), and (4) of subsection (e) of section 102 
of the Healthy Forests Restoration Act of 2003 
(16 U.S.C. 6512); and 
‘‘(bb) large-tree retention of subsection (f) 
of that section; or 
‘‘(B) any organic matter that is available on a renew-
able or recurring basis from non-Federal land or land 
belonging to an Indian or Indian tribe that is held in 
trust by the United States or subject to a restriction against 
alienation imposed by the United States, including— 
‘‘(i) renewable plant material, including— 
‘‘(I) feed grains; 
‘‘(II) other agricultural commodities; 
‘‘(III) other plants and trees; and 
‘‘(IV) algae; and 
‘‘(ii) waste material, including— 
‘‘(I) crop residue; 
‘‘(II) other vegetative waste material (including 
wood waste and wood residues); 
‘‘(III) animal waste and byproducts (including 
fats, oils, greases, and manure); and 
‘‘(IV) food waste and yard waste.
H. R. 6124—417 
‘‘(13) RENEWABLE ENERGY.—The term ‘renewable energy’ 
means energy derived from— 
‘‘(A) a wind, solar, renewable biomass, ocean (including 
tidal, wave, current, and thermal), geothermal, or hydro-
electric source; or 
‘‘(B) hydrogen derived from renewable biomass or water 
using an energy source described in subparagraph (A). 
‘‘(14) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Agriculture. 
‘‘SEC. 9002. BIOBASED MARKETS PROGRAM. 
‘‘(a) FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.— 
‘‘(1) DEFINITION OF PROCURING AGENCY.—In this subsection, 
the term ‘procuring agency’ means— 
‘‘(A) any Federal agency that is using Federal funds 
for procurement; or 
‘‘(B) a person that is a party to a contract with any 
Federal agency, with respect to work performed under such 
a contract. 
‘‘(2) PROCUREMENT PREFERENCE.— 
‘‘(A) IN GENERAL.— 
‘‘(i) PROCURING AGENCY DUTIES.—Except as pro-
vided in clause (ii) and subparagraph (B), after the 
date specified in applicable guidelines prepared pursu-
ant to paragraph (3), each procuring agency shall— 
‘‘(I) establish a procurement program, develop 
procurement specifications, and procure biobased 
products identified under the guidelines described 
in paragraph (3) in accordance with this section; 
and 
‘‘(II) with respect to items described in the 
guidelines, give a procurement preference to those 
items that— 
‘‘(aa) are composed of the highest percent-
age of biobased products practicable; or 
‘‘(bb) comply with the regulations issued 
under section 103 of Public Law 100–556 (42 
U.S.C. 6914b–1). 
‘‘(ii) EXCEPTION.—The requirements of clause (i)(I) 
to establish a procurement program and develop 
procurement specifications shall not apply to a person 
described in paragraph (1)(B). 
‘‘(B) FLEXIBILITY.—Notwithstanding subparagraph (A), 
a procuring agency may decide not to procure items 
described in that subparagraph if the procuring agency 
determines that the items— 
‘‘(i) are not reasonably available within a reason-
able period of time; 
‘‘(ii) fail to meet— 
‘‘(I) the performance standards set forth in 
the applicable specifications; or 
‘‘(II) the reasonable performance standards of 
the procuring agencies; or 
‘‘(iii) are available only at an unreasonable price. 
‘‘(C) MINIMUM REQUIREMENTS.—Each procurement pro-
gram required under this subsection shall, at a minimum—
H. R. 6124—418 
‘‘(i) be consistent with applicable provisions of Fed-
eral procurement law; 
‘‘(ii) ensure that items composed of biobased prod-
ucts will be purchased to the maximum extent prac-
ticable; 
‘‘(iii) include a component to promote the procure-
ment program; 
‘‘(iv) provide for an annual review and monitoring 
of the effectiveness of the procurement program; and 
‘‘(v) adopt 1 of the 2 polices described in subpara-
graph (D) or (E), or a policy substantially equivalent 
to either of those policies. 
‘‘(D) CASE-BY-CASE POLICY.— 
‘‘(i) IN GENERAL.—Subject to subparagraph (B) and 
except as provided in clause (ii), a procuring agency 
adopting the case-by-case policy shall award a contract 
to the vendor offering an item composed of the highest 
percentage of biobased products practicable. 
‘‘(ii) EXCEPTION.—Subject to subparagraph (B), an 
agency adopting the policy described in clause (i) may 
make an award to a vendor offering items with less 
than the maximum biobased products content. 
‘‘(E) 
MINIMUM
CONTENT
STANDARDS.—Subject 
to 
subparagraph (B), a procuring agency adopting the min-
imum content standards policy shall establish minimum 
biobased products content specifications for awarding con-
tracts in a manner that ensures that the biobased products 
content required is consistent with this subsection. 
‘‘(F) CERTIFICATION.—After the date specified in any 
applicable guidelines prepared pursuant to paragraph (3), 
contracting offices shall require that vendors certify that 
the biobased products to be used in the performance of 
the contract will comply with the applicable specifications 
or other contractual requirements. 
‘‘(3) GUIDELINES.— 
‘‘(A) IN GENERAL.—The Secretary, after consultation 
with the Administrator, the Administrator of General Serv-
ices, and the Secretary of Commerce (acting through the 
Director of the National Institute of Standards and Tech-
nology), shall prepare, and from time to time revise, guide-
lines for the use of procuring agencies in complying with 
the requirements of this subsection. 
‘‘(B) REQUIREMENTS.—The guidelines under this para-
graph shall— 
‘‘(i) designate those items (including finished prod-
ucts) that are or can be produced with biobased prod-
ucts (including biobased products for which there is 
only a single product or manufacturer in the category) 
that will be subject to the preference described in para-
graph (2); 
‘‘(ii) designate those intermediate ingredients and 
feedstocks that are or can be used to produce items 
that will be subject to the preference described in para-
graph (2); 
‘‘(iii) automatically designate items composed of 
intermediate ingredients and feedstocks designated
H. R. 6124—419 
under clause (ii), if the content of the designated inter-
mediate ingredients and feedstocks exceeds 50 percent 
of the item (unless the Secretary determines a different 
composition percentage is appropriate); 
‘‘(iv) set forth recommended practices with respect 
to the procurement of biobased products and items 
containing such materials; 
‘‘(v) provide information as to the availability, rel-
ative price, performance, and environmental and public 
health benefits of such materials and items; and 
‘‘(vi) take effect on the date established in the 
guidelines, which may not exceed 1 year after publica-
tion. 
‘‘(C) INFORMATION
PROVIDED.—Information provided 
pursuant to subparagraph (B)(v) with respect to a material 
or item shall be considered to be provided for another 
item made with the same material or item. 
‘‘(D) PROHIBITION.—Guidelines issued under this para-
graph may not require a manufacturer or vendor of 
biobased products, as a condition of the purchase of 
biobased products from the manufacturer or vendor, to 
provide to procuring agencies more data than would be 
required to be provided by other manufacturers or vendors 
offering products for sale to a procuring agency, other than 
data confirming the biobased content of a product. 
‘‘(E) QUALIFYING
PURCHASES.—The guidelines shall 
apply with respect to any purchase or acquisition of a 
procurement item for which— 
‘‘(i) the purchase price of the item exceeds $10,000; 
or 
‘‘(ii) the quantity of the items or of functionally- 
equivalent items purchased or acquired during the pre-
ceding fiscal year was at least $10,000. 
‘‘(4) ADMINISTRATION.— 
‘‘(A) OFFICE OF FEDERAL PROCUREMENT POLICY.—The 
Office of Federal Procurement Policy, in cooperation with 
the Secretary, shall— 
‘‘(i) coordinate the implementation of this sub-
section with other policies for Federal procurement; 
‘‘(ii) annually collect the information required to 
be reported under subparagraph (B) and make the 
information publicly available; 
‘‘(iii) take a leading role in informing Federal agen-
cies concerning, and promoting the adoption of and 
compliance 
with, 
procurement 
requirements 
for 
biobased products by Federal agencies; and 
‘‘(iv) not less than once every 2 years, submit to 
Congress a report that— 
‘‘(I) describes the progress made in carrying 
out this subsection; and 
‘‘(II) contains a summary of the information 
reported pursuant to subparagraph (B). 
‘‘(B) OTHER AGENCIES.—To assist the Office of Federal 
Procurement Policy in carrying out subparagraph (A)— 
‘‘(i) each procuring agency shall submit each year 
to the Office of Federal Procurement Policy, to the 
maximum extent practicable, information concerning—
H. R. 6124—420 
‘‘(I) actions taken to implement paragraph (2); 
‘‘(II) the results of the annual review and mon-
itoring program established under paragraph 
(2)(C)(iv); 
‘‘(III) the number and dollar value of contracts 
entered into during the year that include the direct 
procurement of biobased products; 
‘‘(IV) the number of service and construction 
(including renovations) contracts entered into 
during the year that include language on the use 
of biobased products; and 
‘‘(V) the types and dollar value of biobased 
products actually used by contractors in carrying 
out service and construction (including renova-
tions) contracts during the previous year; and 
‘‘(ii) the General Services Administration and the 
Defense Logistics Agency shall submit each year to 
the Office of Federal Procurement Policy information 
concerning, to the maximum extent practicable, the 
types and dollar value of biobased products purchased 
by procuring agencies. 
‘‘(C) PROCUREMENT
SUBJECT
TO
OTHER
LAW.—Any 
procurement by any Federal agency that is subject to regu-
lations of the Administrator under section 6002 of the 
Solid Waste Disposal Act (42 U.S.C. 6962) shall not be 
subject to the requirements of this section to the extent 
that the requirements are inconsistent with the regula-
tions. 
‘‘(b) LABELING.— 
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Administrator, shall establish a voluntary program under which 
the Secretary authorizes producers of biobased products to use 
the label ‘USDA Certified Biobased Product’. 
‘‘(2) ELIGIBILITY CRITERIA.— 
‘‘(A) CRITERIA.— 
‘‘(i) IN
GENERAL.—Not later than 90 days after 
the date of the enactment of the Food, Conservation, 
and Energy Act of 2008 and except as provided in 
clause (ii), the Secretary, in consultation with the 
Administrator and representatives from small and 
large businesses, academia, other Federal agencies, 
and such other persons as the Secretary considers 
appropriate, shall issue criteria (as of the date of enact-
ment of that Act) for determining which products may 
qualify to receive the label under paragraph (1). 
‘‘(ii) EXCEPTION.—Clause (i) shall not apply to final 
criteria that have been issued (as of the date of enact-
ment of that Act) by the Secretary. 
‘‘(B) REQUIREMENTS.—Criteria issued under subpara-
graph (A) shall— 
‘‘(i) encourage the purchase of products with the 
maximum biobased content; 
‘‘(ii) provide that the Secretary may designate as 
biobased for the purposes of the voluntary program 
established under this subsection finished products 
that contain significant portions of biobased materials 
or components; and
H. R. 6124—421 
‘‘(iii) to the maximum extent practicable, be con-
sistent with the guidelines issued under subsection 
(a)(3). 
‘‘(3) USE OF LABEL.—The Secretary shall ensure that the 
label referred to in paragraph (1) is used only on products 
that meet the criteria issued pursuant to paragraph (2). 
‘‘(c) RECOGNITION.—The Secretary shall— 
‘‘(1) establish a program to recognize Federal agencies and 
private entities that use a substantial amount of biobased prod-
ucts; and 
‘‘(2) encourage Federal agencies to establish incentives pro-
grams to recognize Federal employees or contractors that make 
exceptional contributions to the expanded use of biobased prod-
ucts. 
‘‘(d) LIMITATION.—Nothing in this section shall apply to the 
procurement of motor vehicle fuels, heating oil, or electricity. 
‘‘(e) INCLUSION.—Effective beginning on the date that is 90 
days after the date of enactment of the Food, Conservation, and 
Energy Act of 2008, the Architect of the Capitol, the Sergeant 
at Arms of the Senate, and the Chief Administrative Officer of 
the House of Representatives shall consider the biobased product 
designations made under this section in making procurement 
decisions for the Capitol Complex. 
‘‘(f) NATIONAL TESTING CENTER REGISTRY.—The Secretary shall 
establish a national registry of testing centers for biobased products 
that will serve biobased product manufacturers. 
‘‘(g) REPORTS.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of the Food, Conservation, and Energy Act of 
2008 and each year thereafter, the Secretary shall submit to 
Congress a report on the implementation of this section. 
‘‘(2) CONTENTS.—The report shall include— 
‘‘(A) a comprehensive management plan that estab-
lishes tasks, milestones, and timelines, organizational roles 
and responsibilities, and funding allocations for fully imple-
menting this section; and 
‘‘(B) information on the status of implementation of— 
‘‘(i) item designations (including designation of 
intermediate ingredients and feedstocks); and 
‘‘(ii) the voluntary labeling program established 
under subsection (b). 
‘‘(h) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to provide manda-
tory funding for biobased products testing and labeling as 
required to carry out this section— 
‘‘(A) $1,000,000 for fiscal year 2008; and 
‘‘(B) $2,000,000 for each of fiscal years 2009 through 
2012. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $2,000,000 
for each of fiscal years 2009 through 2012.
H. R. 6124—422 
‘‘SEC. 9003. BIOREFINERY ASSISTANCE. 
‘‘(a) PURPOSE.—The purpose of this section is to assist in the 
development of new and emerging technologies for the development 
of advanced biofuels, so as to— 
‘‘(1) increase the energy independence of the United States; 
‘‘(2) promote resource conservation, public health, and the 
environment; 
‘‘(3) diversify markets for agricultural and forestry products 
and agriculture waste material; and 
‘‘(4) create jobs and enhance the economic development 
of the rural economy. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an 
individual, entity, Indian tribe, or unit of State or local govern-
ment, including a corporation, farm cooperative, farmer coopera-
tive 
organization, 
association 
of 
agricultural 
producers, 
National Laboratory, institution of higher education, rural elec-
tric cooperative, public power entity, or consortium of any of 
those entities. 
‘‘(2) ELIGIBLE TECHNOLOGY.—The term ‘eligible technology’ 
means, as determined by the Secretary— 
‘‘(A) a technology that is being adopted in a viable 
commercial-scale operation of a biorefinery that produces 
an advanced biofuel; and 
‘‘(B) a technology not described in subparagraph (A) 
that has been demonstrated to have technical and economic 
potential for commercial application in a biorefinery that 
produces an advanced biofuel. 
‘‘(c) ASSISTANCE.—The Secretary shall make available to eligible 
entities— 
‘‘(1) grants to assist in paying the costs of the development 
and construction of demonstration-scale biorefineries to dem-
onstrate the commercial viability of 1 or more processes for 
converting renewable biomass to advanced biofuels; and 
‘‘(2) guarantees for loans made to fund the development, 
construction, and retrofitting of commercial-scale biorefineries 
using eligible technology. 
‘‘(d) GRANTS.— 
‘‘(1) COMPETITIVE BASIS.—The Secretary shall award grants 
under subsection (c)(1) on a competitive basis. 
‘‘(2) SELECTION CRITERIA.— 
‘‘(A) IN GENERAL.—In approving grant applications, the 
Secretary shall establish a priority scoring system that 
assigns priority scores to each application and only approve 
applications that exceed a specified minimum, as deter-
mined by the Secretary. 
‘‘(B) FEASIBILITY.—In approving a grant application, 
the Secretary shall determine the technical and economic 
feasibility of the project based on a feasibility study of 
the project described in the application conducted by an 
independent third party. 
‘‘(C) SCORING
SYSTEM.—In determining the priority 
scoring system, the Secretary shall consider— 
‘‘(i) the potential market for the advanced biofuel 
and the byproducts produced;
H. R. 6124—423 
‘‘(ii) the level of financial participation by the 
applicant, including support from non-Federal and pri-
vate sources; 
‘‘(iii) whether the applicant is proposing to use 
a feedstock not previously used in the production of 
advanced biofuels; 
‘‘(iv) whether the applicant is proposing to work 
with producer associations or cooperatives; 
‘‘(v) whether the applicant has established that 
the adoption of the process proposed in the application 
will have a positive impact on resource conservation, 
public health, and the environment; 
‘‘(vi) the potential for rural economic development; 
‘‘(vii) whether the area in which the applicant pro-
poses to locate the biorefinery has other similar facili-
ties; 
‘‘(viii) whether the project can be replicated; and 
‘‘(ix) scalability for commercial use. 
‘‘(3) COST SHARING.— 
‘‘(A) LIMITS.—The amount of a grant awarded for 
development and construction of a biorefinery under sub-
section (c)(1) shall not exceed an amount equal to 30 per-
cent of the cost of the project. 
‘‘(B) FORM OF GRANTEE SHARE.— 
‘‘(i) IN GENERAL.—The grantee share of the cost 
of a project may be made in the form of cash or mate-
rial. 
‘‘(ii) LIMITATION.—The amount of the grantee share 
that is made in the form of material shall not exceed 
15 percent of the amount of the grantee share deter-
mined under subparagraph (A). 
‘‘(e) LOAN GUARANTEES.— 
‘‘(1) SELECTION CRITERIA.— 
‘‘(A) IN
GENERAL.—In approving loan guarantee 
applications, the Secretary shall establish a priority scoring 
system that assigns priority scores to each application and 
only approve applications that exceed a specified minimum, 
as determined by the Secretary. 
‘‘(B) FEASIBILITY.—In approving a loan guarantee 
application, the Secretary shall determine the technical 
and economic feasibility of the project based on a feasibility 
study of the project described in the application conducted 
by an independent third party. 
‘‘(C) SCORING
SYSTEM.—In determining the priority 
scoring system for loan guarantees under subsection (c)(2), 
the Secretary shall consider— 
‘‘(i) whether the applicant has established a market 
for the advanced biofuel and the byproducts produced; 
‘‘(ii) whether the area in which the applicant pro-
poses to place the biorefinery has other similar facili-
ties; 
‘‘(iii) whether the applicant is proposing to use 
a feedstock not previously used in the production of 
advanced biofuels; 
‘‘(iv) whether the applicant is proposing to work 
with producer associations or cooperatives;
H. R. 6124—424 
‘‘(v) the level of financial participation by the 
applicant, including support from non-Federal and pri-
vate sources; 
‘‘(vi) whether the applicant has established that 
the adoption of the process proposed in the application 
will have a positive impact on resource conservation, 
public health, and the environment; 
‘‘(vii) whether the applicant can establish that if 
adopted, the biofuels production technology proposed 
in the application will not have any significant negative 
impacts on existing manufacturing plants or other 
facilities that use similar feedstocks; 
‘‘(viii) the potential for rural economic develop-
ment; 
‘‘(ix) the level of local ownership proposed in the 
application; and 
‘‘(x) whether the project can be replicated. 
‘‘(2) LIMITATIONS.— 
‘‘(A) MAXIMUM AMOUNT OF LOAN GUARANTEED.—The 
principal amount of a loan guaranteed under subsection 
(c)(2) may not exceed $250,000,000. 
‘‘(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED.— 
‘‘(i) IN
GENERAL.—Except as otherwise provided 
in this subparagraph, a loan guaranteed under sub-
section (c)(2) shall be in an amount not to exceed 
80 percent of the project costs, as determined by the 
Secretary. 
‘‘(ii) 
OTHER
DIRECT
FEDERAL
FUNDING.—The 
amount of a loan guaranteed for a project under sub-
section (c)(2) shall be reduced by the amount of other 
direct Federal funding that the eligible entity receives 
for the same project. 
‘‘(iii) AUTHORITY TO GUARANTEE THE LOAN.—The 
Secretary may guarantee up to 90 percent of the prin-
cipal and interest due on a loan guaranteed under 
subsection (c)(2). 
‘‘(C) LOAN
GUARANTEE
FUND
DISTRIBUTION.—Of the 
funds made available for loan guarantees for a fiscal year 
under subsection (h), 50 percent of the funds shall be 
reserved for obligation during the second half of the fiscal 
year. 
‘‘(f) CONSULTATION.—In carrying out this section, the Secretary 
shall consult with the Secretary of Energy. 
‘‘(g) CONDITION ON PROVISION OF ASSISTANCE.— 
‘‘(1) IN GENERAL.—As a condition of receiving a grant or 
loan guarantee under this section, an eligible entity shall 
ensure that all laborers and mechanics employed by contractors 
or subcontractors in the performance of construction work 
financed, in whole or in part, with the grant or loan guarantee, 
as the case may be, shall be paid wages at rates not less 
than those prevailing on similar construction in the locality, 
as determined by the Secretary of Labor in accordance with 
sections 3141 through 3144, 3146, and 3147 of title 40, United 
States Code. 
‘‘(2) AUTHORITY AND FUNCTIONS.—The Secretary of Labor 
shall have, with respect to the labor standards described in
H. R. 6124—425 
paragraph (1), the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (5 U.S.C. App) and section 
3145 of title 40, United States Code. 
‘‘(h) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use for the cost of 
loan guarantees under this section, to remain available until 
expended— 
‘‘(A) $75,000,000 for fiscal year 2009; and 
‘‘(B) $245,000,000 for fiscal year 2010. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $150,000,000 
for each of fiscal years 2009 through 2012. 
‘‘SEC. 9004. REPOWERING ASSISTANCE. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a program 
to encourage biorefineries in existence on the date of enactment 
of the Food, Conservation, and Energy Act of 2008 to replace fossil 
fuels used to produce heat or power to operate the biorefineries 
by making payments for— 
‘‘(1) the installation of new systems that use renewable 
biomass; or 
‘‘(2) the new production of energy from renewable biomass. 
‘‘(b) PAYMENTS.— 
‘‘(1) IN
GENERAL.—The Secretary may make payments 
under this section to any biorefinery that meets the require-
ments of this section for a period determined by the Secretary. 
‘‘(2) AMOUNT.—The Secretary shall determine the amount 
of payments to be made under this section to a biorefinery 
after considering— 
‘‘(A) the quantity of fossil fuels a renewable biomass 
system is replacing; 
‘‘(B) the percentage reduction in fossil fuel used by 
the biorefinery that will result from the installation of 
the renewable biomass system; and 
‘‘(C) the cost and cost effectiveness of the renewable 
biomass system. 
‘‘(c) ELIGIBILITY.—To be eligible to receive a payment under 
this section, a biorefinery shall demonstrate to the Secretary that 
the renewable biomass system of the biorefinery is feasible based 
on an independent feasibility study that takes into account the 
economic, technical and environmental aspects of the system. 
‘‘(d) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to make payments 
under this section $35,000,000 for fiscal year 2009, to remain 
available until expended. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $15,000,000 
for each of fiscal years 2009 through 2012. 
‘‘SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS. 
‘‘(a) DEFINITION OF ELIGIBLE PRODUCER.—In this section, the 
term ‘eligible producer’ means a producer of advanced biofuels.
H. R. 6124—426 
‘‘(b) PAYMENTS.—The Secretary shall make payments to eligible 
producers to support and ensure an expanding production of 
advanced biofuels. 
‘‘(c) CONTRACTS.—To receive a payment, an eligible producer 
shall— 
‘‘(1) enter into a contract with the Secretary for production 
of advanced biofuels; and 
‘‘(2) submit to the Secretary such records as the Secretary 
may require as evidence of the production of advanced biofuels. 
‘‘(d) BASIS FOR PAYMENTS.—The Secretary shall make payments 
under this section to eligible producers based on— 
‘‘(1) the quantity and duration of production by the eligible 
producer of an advanced biofuel; 
‘‘(2) the net nonrenewable energy content of the advanced 
biofuel, if sufficient data is available, as determined by the 
Secretary; and 
‘‘(3) other appropriate factors, as determined by the Sec-
retary. 
‘‘(e) EQUITABLE DISTRIBUTION.—The Secretary may limit the 
amount of payments that may be received by a single eligible 
producer under this section in order to distribute the total amount 
of funding available in an equitable manner. 
‘‘(f) OTHER REQUIREMENTS.—To receive a payment under this 
section, an eligible producer shall meet any other requirements 
of Federal and State law (including regulations) applicable to the 
production of advanced biofuels. 
‘‘(g) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out this 
section, to remain available until expended— 
‘‘(A) $55,000,000 for fiscal year 2009; 
‘‘(B) $55,000,000 for fiscal year 2010; 
‘‘(C) $85,000,000 for fiscal year 2011; and 
‘‘(D) $105,000,000 for fiscal year 2012. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $25,000,000 
for each of fiscal years 2009 through 2012. 
‘‘(3) LIMITATION.—Of the funds provided for each fiscal 
year, not more than 5 percent of the funds shall be made 
available to eligible producers for production at facilities with 
a total refining capacity exceeding 150,000,000 gallons per year. 
‘‘SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall, under such terms 
and conditions as the Secretary determines to be appropriate, make 
competitive grants to eligible entities to educate governmental and 
private entities that operate vehicle fleets, other interested entities 
(as determined by the Secretary), and the public about the benefits 
of biodiesel fuel use. 
‘‘(b) ELIGIBLE ENTITIES.—To receive a grant under subsection 
(b), an entity shall— 
‘‘(1) be a nonprofit organization or institution of higher 
education; 
‘‘(2) have demonstrated knowledge of biodiesel fuel produc-
tion, use, or distribution; and
H. R. 6124—427 
‘‘(3) have demonstrated the ability to conduct educational 
and technical support programs. 
‘‘(c) CONSULTATION.—In carrying out this section, the Secretary 
shall consult with the Secretary of Energy. 
‘‘(d) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use to carry out this section $1,000,000 
for each of fiscal years 2008 through 2012. 
‘‘SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary, in consultation with the 
Secretary of Energy, shall establish a Rural Energy for America 
Program to promote energy efficiency and renewable energy 
development for agricultural producers and rural small businesses 
through— 
‘‘(1) grants for energy audits and renewable energy develop-
ment assistance; and 
‘‘(2) financial assistance for energy efficiency improvements 
and renewable energy systems. 
‘‘(b) ENERGY AUDITS AND RENEWABLE ENERGY DEVELOPMENT 
ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall make competitive 
grants to eligible entities to provide assistance to agricultural 
producers and rural small businesses— 
‘‘(A) to become more energy efficient; and 
‘‘(B) to use renewable energy technologies and 
resources. 
‘‘(2) ELIGIBLE ENTITIES.—An eligible entity under this sub-
section is— 
‘‘(A) a unit of State, tribal, or local government; 
‘‘(B) a land-grant college or university or other institu-
tion of higher education; 
‘‘(C) a rural electric cooperative or public power entity; 
and 
‘‘(D) any other similar entity, as determined by the 
Secretary. 
‘‘(3) SELECTION
CRITERIA.—In reviewing applications of 
eligible entities to receive grants under paragraph (1), the 
Secretary shall consider— 
‘‘(A) the ability and expertise of the eligible entity 
in providing professional energy audits and renewable 
energy assessments; 
‘‘(B) the geographic scope of the program proposed 
by the eligible entity in relation to the identified need; 
‘‘(C) the number of agricultural producers and rural 
small businesses to be assisted by the program; 
‘‘(D) the potential of the proposed program to produce 
energy savings and environmental benefits; 
‘‘(E) the plan of the eligible entity for performing out-
reach and providing information and assistance to agricul-
tural producers and rural small businesses on the benefits 
of energy efficiency and renewable energy development; 
and 
‘‘(F) the ability of the eligible entity to leverage other 
sources of funding. 
‘‘(4) USE OF GRANT FUNDS.—A recipient of a grant under 
paragraph (1) shall use the grant funds to assist agricultural 
producers and rural small businesses by—
H. R. 6124—428 
‘‘(A) conducting and promoting energy audits; and 
‘‘(B) providing recommendations and information on 
how— 
‘‘(i) to improve the energy efficiency of the oper-
ations of the agricultural producers and rural small 
businesses; and 
‘‘(ii) to use renewable energy technologies and 
resources in the operations. 
‘‘(5) LIMITATION.—Grant recipients may not use more than 
5 percent of a grant for administrative expenses. 
‘‘(6) COST SHARING.—A recipient of a grant under paragraph 
(1) that conducts an energy audit for an agricultural producer 
or rural small business under paragraph (4) shall require that, 
as a condition of the energy audit, the agricultural producer 
or rural small business pay at least 25 percent of the cost 
of the energy audit, which shall be retained by the eligible 
entity for the cost of the energy audit. 
‘‘(c) FINANCIAL ASSISTANCE FOR ENERGY EFFICIENCY IMPROVE-
MENTS AND RENEWABLE ENERGY SYSTEMS.— 
‘‘(1) IN GENERAL.—In addition to any similar authority, 
the Secretary shall provide loan guarantees and grants to agri-
cultural producers and rural small businesses— 
‘‘(A) to purchase renewable energy systems, including 
systems that may be used to produce and sell electricity; 
and 
‘‘(B) to make energy efficiency improvements. 
‘‘(2) AWARD CONSIDERATIONS.—In determining the amount 
of a loan guarantee or grant provided under this section, the 
Secretary shall take into consideration, as applicable— 
‘‘(A) the type of renewable energy system to be pur-
chased; 
‘‘(B) the estimated quantity of energy to be generated 
by the renewable energy system; 
‘‘(C) the expected environmental benefits of the renew-
able energy system; 
‘‘(D) the quantity of energy savings expected to be 
derived from the activity, as demonstrated by an energy 
audit; 
‘‘(E) the estimated period of time for the energy savings 
generated by the activity to equal the cost of the activity; 
‘‘(F) the expected energy efficiency of the renewable 
energy system; and 
‘‘(G) other appropriate factors. 
‘‘(3) FEASIBILITY STUDIES.— 
‘‘(A) IN GENERAL.—The Secretary may provide assist-
ance in the form of grants to an agricultural producer 
or rural small business to conduct a feasibility study for 
a project for which assistance may be provided under this 
subsection. 
‘‘(B) LIMITATION.—The Secretary shall use not more 
than 10 percent of the funds made available to carry out 
this subsection to provide assistance described in subpara-
graph (A). 
‘‘(C) AVOIDANCE
OF
DUPLICATIVE
ASSISTANCE.—An 
entity shall be ineligible to receive assistance to carry 
out a feasibility study for a project under this paragraph
H. R. 6124—429 
if the entity has received other Federal or State assistance 
for a feasibility study for the project. 
‘‘(4) LIMITS.— 
‘‘(A) GRANTS.—The amount of a grant under this sub-
section shall not exceed 25 percent of the cost of the activity 
carried out using funds from the grant. 
‘‘(B) MAXIMUM
AMOUNT
OF
LOAN
GUARANTEES.—The 
amount of a loan guaranteed under this subsection shall 
not exceed $25,000,000. 
‘‘(C) MAXIMUM AMOUNT OF COMBINED GRANT AND LOAN 
GUARANTEE.—The combined amount of a grant and loan 
guaranteed under this subsection shall not exceed 75 per-
cent of the cost of the activity funded under this subsection. 
‘‘(d) OUTREACH.—The Secretary shall ensure, to the maximum 
extent practicable, that adequate outreach relating to this section 
is being conducted at the State and local levels. 
‘‘(e) LOWER-COST ACTIVITIES.— 
‘‘(1) LIMITATION ON USE OF FUNDS.—Except as provided 
in paragraph (2), the Secretary shall use not less than 20 
percent of the funds made available under subsection (g) to 
provide grants of $20,000 or less. 
‘‘(2) EXCEPTION.—Effective beginning on June 30 of each 
fiscal year, paragraph (1) shall not apply to funds made avail-
able under subsection (g) for the fiscal year. 
‘‘(f) REPORT.—Not later than 4 years after the date of enactment 
of the Food, Conservation, and Energy Act of 2008, the Secretary 
shall submit to Congress a report on the implementation of this 
section, including the outcomes achieved by projects funded under 
this section. 
‘‘(g) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out this 
section, to remain available until expended— 
‘‘(A) $55,000,000 for fiscal year 2009; 
‘‘(B) $60,000,000 for fiscal year 2010; 
‘‘(C) $70,000,000 for fiscal year 2011; and 
‘‘(D) $70,000,000 for fiscal year 2012. 
‘‘(2) AUDIT AND TECHNICAL ASSISTANCE FUNDING.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), of the 
funds made available for each fiscal year under paragraph 
(1), 4 percent shall be available to carry out subsection 
(b). 
‘‘(B) OTHER USE.—Funds not obligated under subpara-
graph (A) by April 1 of each fiscal year to carry out sub-
section (b) shall become available to carry out subsection 
(c). 
‘‘(3) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $25,000,000 
for each of fiscal years 2009 through 2012. 
‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIOBASED
PRODUCT.—The term ‘biobased product’ 
means— 
‘‘(A) an industrial product (including chemicals, mate-
rials, and polymers) produced from biomass; or
H. R. 6124—430 
‘‘(B) a commercial or industrial product (including 
animal feed and electric power) derived in connection with 
the conversion of biomass to fuel. 
‘‘(2) DEMONSTRATION.—The term ‘demonstration’ means 
demonstration of technology in a pilot plant or semi-works 
scale facility, including a plant or facility located on a farm. 
‘‘(3) INITIATIVE.—The term ‘Initiative’ means the Biomass 
Research and Development Initiative established under sub-
section (e). 
‘‘(b) COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
AND DEVELOPMENT.— 
‘‘(1) IN GENERAL.—The Secretary of Agriculture and the 
Secretary of Energy shall coordinate policies and procedures 
that promote research and development regarding the produc-
tion of biofuels and biobased products. 
‘‘(2) POINTS
OF
CONTACT.—To coordinate research and 
development programs and activities relating to biofuels and 
biobased products that are carried out by their respective 
departments— 
‘‘(A) the Secretary of Agriculture shall designate, as 
the point of contact for the Department of Agriculture, 
an officer of the Department of Agriculture appointed by 
the President to a position in the Department before the 
date of the designation, by and with the advice and consent 
of the Senate; and 
‘‘(B) the Secretary of Energy shall designate, as the 
point of contact for the Department of Energy, an officer 
of the Department of Energy appointed by the President 
to a position in the Department before the date of the 
designation, by and with the advice and consent of the 
Senate. 
‘‘(c) BIOMASS RESEARCH AND DEVELOPMENT BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established the Biomass 
Research and Development Board to carry out the duties 
described in paragraph (3). 
‘‘(2) MEMBERSHIP.—The Board shall consist of— 
‘‘(A) the point of contacts of the Department of Energy 
and the Department of Agriculture, who shall serve as 
cochairpersons of the Board; 
‘‘(B) a senior officer of each of the Department of the 
Interior, 
the 
Environmental 
Protection 
Agency, 
the 
National Science Foundation, and the Office of Science 
and Technology Policy, each of whom shall have a rank 
that is equivalent to the rank of the points of contact; 
and 
‘‘(C) at the option of the Secretary of Agriculture and 
the Secretary of Energy, other members appointed by the 
Secretaries (after consultation with the Board). 
‘‘(3) DUTIES.—The Board shall— 
‘‘(A) coordinate research and development activities 
relating to biofuels and biobased products— 
‘‘(i) between the Department of Agriculture and 
the Department of Energy; and 
‘‘(ii) with other departments and agencies of the 
Federal Government; 
‘‘(B) provide recommendations to the points of contact 
concerning administration of this title;
H. R. 6124—431 
‘‘(C) ensure that— 
‘‘(i) solicitations are open and competitive with 
awards made annually; and 
‘‘(ii) objectives and evaluation criteria of the solici-
tations are clearly stated and minimally prescriptive, 
with no areas of special interest; and 
‘‘(D) ensure that the panel of scientific and technical 
peers assembled under subsection (e) to review proposals 
is composed predominantly of independent experts selected 
from outside the Departments of Agriculture and Energy. 
‘‘(4) FUNDING.—Each agency represented on the Board is 
encouraged to provide funds for any purpose under this section. 
‘‘(5) MEETINGS.—The Board shall meet at least quarterly. 
‘‘(d) 
BIOMASS
RESEARCH
AND
DEVELOPMENT
TECHNICAL 
ADVISORY COMMITTEE.— 
‘‘(1) ESTABLISHMENT.—There is established the Biomass 
Research and Development Technical Advisory Committee to 
carry out the duties described in paragraph (3). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The Advisory Committee shall con-
sist of— 
‘‘(i) an individual affiliated with the biofuels 
industry; 
‘‘(ii) an individual affiliated with the biobased 
industrial and commercial products industry; 
‘‘(iii) an individual affiliated with an institution 
of higher education who has expertise in biofuels and 
biobased products; 
‘‘(iv) 2 prominent engineers or scientists from 
government or academia who have expertise in biofuels 
and biobased products; 
‘‘(v) an individual affiliated with a commodity trade 
association; 
‘‘(vi) 2 individuals affiliated with environmental 
or conservation organizations; 
‘‘(vii) an individual associated with State govern-
ment who has expertise in biofuels and biobased prod-
ucts; 
‘‘(viii) an individual with expertise in energy and 
environmental analysis; 
‘‘(ix) an individual with expertise in the economics 
of biofuels and biobased products; 
‘‘(x) an individual with expertise in agricultural 
economics; 
‘‘(xi) an individual with expertise in plant biology 
and biomass feedstock development; 
‘‘(xii) an individual with expertise in agronomy, 
crop science, or soil science; and 
‘‘(xiii) at the option of the points of contact, other 
members. 
‘‘(B) APPOINTMENT.—The members of the Advisory 
Committee shall be appointed by the points of contact. 
‘‘(3) DUTIES.—The Advisory Committee shall— 
‘‘(A) advise the points of contact with respect to the 
Initiative; and 
‘‘(B) evaluate and make recommendations in writing 
to the Board regarding whether—
H. R. 6124—432 
‘‘(i) funds authorized for the Initiative are distrib-
uted and used in a manner that is consistent with 
the objectives, purposes, and considerations of the Ini-
tiative; 
‘‘(ii) solicitations are open and competitive with 
awards made annually; 
‘‘(iii) objectives and evaluation criteria of the solici-
tations are clearly stated and minimally prescriptive, 
with no areas of special interest; 
‘‘(iv) the points of contact are funding proposals 
under this title that are selected on the basis of merit, 
as determined by an independent panel of scientific 
and technical peers predominantly from outside the 
Departments of Agriculture and Energy; and 
‘‘(v) activities under this title are carried out in 
accordance with this title. 
‘‘(4) COORDINATION.—To avoid duplication of effort, the 
Advisory Committee shall coordinate its activities with those 
of other Federal advisory committees working in related areas. 
‘‘(5) MEETINGS.—The Advisory Committee shall meet at 
least quarterly. 
‘‘(6) TERMS.—Members of the Advisory Committee shall 
be appointed for a term of 3 years. 
‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.— 
‘‘(1) IN GENERAL.—The Secretary of Agriculture and the 
Secretary of Energy, acting through their respective points 
of contact and in consultation with the Board, shall establish 
and carry out a Biomass Research and Development Initiative 
under which competitively awarded grants, contracts, and 
financial assistance are provided to, or entered into with, 
eligible entities to carry out research on and development and 
demonstration of— 
‘‘(A) biofuels and biobased products; and 
‘‘(B) the methods, practices, and technologies, for the 
production of biofuels and biobased products. 
‘‘(2) OBJECTIVES.—The objectives of the Initiative are to 
develop— 
‘‘(A) technologies and processes necessary for abundant 
commercial production of biofuels at prices competitive with 
fossil fuels; 
‘‘(B) high-value biobased products— 
‘‘(i) to enhance the economic viability of biofuels 
and power; 
‘‘(ii) to serve as substitutes for petroleum-based 
feedstocks and products; and 
‘‘(iii) to enhance the value of coproducts produced 
using the technologies and processes; and 
‘‘(C) a diversity of economically and environmentally 
sustainable domestic sources of renewable biomass for 
conversion to biofuels, bioenergy, and biobased products. 
‘‘(3) TECHNICAL AREAS.—The Secretary of Agriculture and 
the Secretary of Energy, in consultation with the Administrator 
of the Environmental Protection Agency and heads of other 
appropriate departments and agencies (referred to in this sub-
section as the ‘Secretaries’), shall direct the Initiative in the 
3 following areas:
H. R. 6124—433 
‘‘(A) FEEDSTOCKS
DEVELOPMENT.—Research, develop-
ment, and demonstration activities regarding feedstocks 
and feedstock logistics (including the harvest, handling, 
transport, preprocessing, and storage) relevant to produc-
tion of raw materials for conversion to biofuels and biobased 
products. 
‘‘(B) BIOFUELS
AND
BIOBASED
PRODUCTS
DEVELOP-
MENT.—Research, development, and demonstration activi-
ties to support— 
‘‘(i) the development of diverse cost-effective tech-
nologies for the use of cellulosic biomass in the produc-
tion of biofuels and biobased products; and 
‘‘(ii) product diversification through technologies 
relevant to production of a range of biobased products 
(including chemicals, animal feeds, and cogenerated 
power) that potentially can increase the feasibility of 
fuel production in a biorefinery. 
‘‘(C) BIOFUELS DEVELOPMENT ANALYSIS.— 
‘‘(i) STRATEGIC
GUIDANCE.—The development of 
analysis that provides strategic guidance for the 
application of renewable biomass technologies to 
improve sustainability and environmental quality, cost 
effectiveness, security, and rural economic develop-
ment. 
‘‘(ii) 
ENERGY
AND
ENVIRONMENTAL
IMPACT.— 
Development of systematic evaluations of the impact 
of expanded biofuel production on the environment 
(including forest land) and on the food supply for 
humans and animals, including the improvement and 
development of tools for life cycle analysis of current 
and potential biofuels. 
‘‘(iii) ASSESSMENT OF FEDERAL LAND.—Assessments 
of the potential of Federal land resources to increase 
the production of feedstocks for biofuels and biobased 
products, consistent with the integrity of soil and water 
resources and with other environmental considerations. 
‘‘(4) ADDITIONAL
CONSIDERATIONS.—Within the technical 
areas described in paragraph (3), the Secretaries shall support 
research and development— 
‘‘(A) to create continuously expanding opportunities for 
participants in existing biofuels production by seeking 
synergies and continuity with current technologies and 
practices; 
‘‘(B) to maximize the environmental, economic, and 
social benefits of production of biofuels and derived 
biobased products on a large scale; and 
‘‘(C) to facilitate small-scale production and local and 
on-farm use of biofuels, including the development of small- 
scale gasification technologies for production of biofuel from 
cellulosic feedstocks. 
‘‘(5) ELIGIBILITY.—To be eligible for a grant, contract, or 
assistance under this section, an applicant shall be— 
‘‘(A) an institution of higher education; 
‘‘(B) a National Laboratory; 
‘‘(C) a Federal research agency; 
‘‘(D) a State research agency; 
‘‘(E) a private sector entity;
H. R. 6124—434 
‘‘(F) a nonprofit organization; or 
‘‘(G) a consortium of 2 or more entities described in 
subparagraphs (A) through (F). 
‘‘(6) ADMINISTRATION.— 
‘‘(A) IN GENERAL.—After consultation with the Board, 
the points of contact shall— 
‘‘(i) publish annually 1 or more joint requests for 
proposals for grants, contracts, and assistance under 
this subsection; 
‘‘(ii) require that grants, contracts, and assistance 
under this section be awarded based on a scientific 
peer review by an independent panel of scientific and 
technical peers; 
‘‘(iii) give special consideration to applications 
that— 
‘‘(I) involve a consortia of experts from mul-
tiple institutions; 
‘‘(II) encourage the integration of disciplines 
and application of the best technical resources; 
and 
‘‘(III) increase the geographic diversity of dem-
onstration projects; and 
‘‘(iv) require that the technical areas described in 
each of subparagraphs (A), (B), and (C) of paragraph 
(3) receive not less than 15 percent of funds made 
available to carry out this section. 
‘‘(B) COST SHARE.— 
‘‘(i) RESEARCH AND DEVELOPMENT PROJECTS.— 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), the non-Federal share of the cost of 
a research or development project under this sec-
tion shall be not less than 20 percent. 
‘‘(II) REDUCTION.—The Secretary of Agri-
culture or the Secretary of Energy, as appropriate, 
may reduce the non-Federal share required under 
subclause (I) if the appropriate Secretary deter-
mines the reduction to be necessary and appro-
priate. 
‘‘(ii) 
DEMONSTRATION
AND
COMMERCIAL 
PROJECTS.—The non-Federal share of the cost of a dem-
onstration or commercial project under this section 
shall be not less than 50 percent. 
‘‘(C) TECHNOLOGY AND INFORMATION TRANSFER.—The 
Secretary of Agriculture and the Secretary of Energy shall 
ensure that applicable research results and technologies 
from the Initiative are— 
‘‘(i) adapted, made available, and disseminated, 
as appropriate; and 
‘‘(ii) included in the best practices database estab-
lished under section 1672C(e) of the Food, Agriculture, 
Conservation, and Trade Act of 1990. 
‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary of Energy and the Sec-
retary of Agriculture may provide such administrative support 
and funds of the Department of Energy and the Department 
of Agriculture to the Board and the Advisory Committee as
H. R. 6124—435 
are necessary to enable the Board and the Advisory Committee 
to carry out their duties under this section. 
‘‘(2) OTHER AGENCIES.—The heads of the agencies referred 
to in subsection (c)(2)(B), and the other members of the Board 
appointed under subsection (c)(2)(C), are encouraged to provide 
administrative support and funds of their respective agencies 
to the Board and the Advisory Committee. 
‘‘(3) LIMITATION.—Not more than 4 percent of the amount 
made available for each fiscal year under subsection (h) may 
be used to pay the administrative costs of carrying out this 
section. 
‘‘(g) REPORTS.—For each fiscal year for which funds are made 
available to carry out this section, the Secretary of Energy and 
the Secretary of Agriculture shall jointly submit to Congress a 
detailed report on— 
‘‘(1) the status and progress of the Initiative, including 
a report from the Advisory Committee on whether funds appro-
priated for the Initiative have been distributed and used in 
a manner that is consistent with the objectives and require-
ments of this section; 
‘‘(2) the general status of cooperation and research and 
development efforts carried out at each agency with respect 
to biofuels and biobased products; and 
‘‘(3) the plans of the Secretary of Energy and the Secretary 
of Agriculture for addressing concerns raised in the report, 
including concerns raised by the Advisory Committee. 
‘‘(h) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary of Agriculture shall use to 
carry out this section, to remain available until expended— 
‘‘(A) $20,000,000 for fiscal year 2009; 
‘‘(B) $28,000,000 for fiscal year 2010; 
‘‘(C) $30,000,000 for fiscal year 2011; and 
‘‘(D) $40,000,000 for fiscal year 2012. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $35,000,000 
for each of fiscal years 2009 through 2012. 
‘‘SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE RURAL COMMUNITY.—The term ‘eligible rural 
community’ means a community located in a rural area (as 
defined in section 343(a)(13)(A) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a)(13)(A))). 
‘‘(2) INITIATIVE.—The term ‘Initiative’ means the Rural 
Energy Self-Sufficiency Initiative established under this section. 
‘‘(3) INTEGRATED RENEWABLE ENERGY SYSTEM.—The term 
‘integrated renewable energy system’ means a community-wide 
energy system that— 
‘‘(A) reduces conventional energy use; and 
‘‘(B) increases the use of energy from renewable 
sources. 
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a Rural 
Energy Self-Sufficiency Initiative to provide financial assistance
H. R. 6124—436 
for the purpose of enabling eligible rural communities to substan-
tially increase the energy self-sufficiency of the eligible rural 
communities. 
‘‘(c) GRANT ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall make grants avail-
able under the Initiative to eligible rural communities to carry 
out an activity described in paragraph (2). 
‘‘(2) USE OF GRANT FUNDS.—An eligible rural community 
may use a grant— 
‘‘(A) to conduct an energy assessment that assesses 
the total energy use of all energy users in the eligible 
rural community; 
‘‘(B) to formulate and analyze ideas for reducing energy 
usage by the eligible rural community from conventional 
sources; and 
‘‘(C) to develop and install an integrated renewable 
energy system. 
‘‘(3) GRANT SELECTION.— 
‘‘(A) APPLICATION.—To be considered for a grant, an 
eligible rural community shall submit an application to 
the Secretary that describes the ways in which the commu-
nity would use the grant to carry out an activity described 
in paragraph (2). 
‘‘(B) PREFERENCE.—The Secretary shall give preference 
to those applications that propose to carry out an activity 
in coordination with— 
‘‘(i) institutions of higher education or nonprofit 
foundations of institutions of higher education; 
‘‘(ii) Federal, State, or local government agencies; 
‘‘(iii) public or private power generation entities; 
or 
‘‘(iv) government entities with responsibility for 
water or natural resources. 
‘‘(4) REPORT.—An eligible rural community receiving a 
grant under the Initiative shall submit to the Secretary a 
report on the project of the eligible rural community. 
‘‘(5) COST-SHARING.—The amount of a grant under the Ini-
tiative shall not exceed 50 percent of the cost of the activities 
described in the application. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2009 through 2012. 
‘‘SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRO-
DUCERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIOENERGY.—The term ‘bioenergy’ means fuel grade 
ethanol and other biofuel. 
‘‘(2) BIOENERGY PRODUCER.—The term ‘bioenergy producer’ 
means a producer of bioenergy that uses an eligible commodity 
to produce bioenergy under this section. 
‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible commodity’ 
means a form of raw or refined sugar or in-process sugar 
that is eligible to be marketed in the United States for human 
consumption or to be used for the extraction of sugar for human 
consumption.
H. R. 6124—437 
‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an 
entity located in the United States that markets an eligible 
commodity in the United States. 
‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 
‘‘(1) IN GENERAL.— 
‘‘(A) PURCHASES
AND
SALES.—For each of the 2008 
through 2012 crops, the Secretary shall purchase eligible 
commodities from eligible entities and sell such commod-
ities to bioenergy producers for the purpose of producing 
bioenergy in a manner that ensures that section 156 of 
the Federal Agriculture Improvement and Reform Act (7 
U.S.C. 7272) is operated at no cost to the Federal Govern-
ment by avoiding forfeitures to the Commodity Credit Cor-
poration. 
‘‘(B) COMPETITIVE PROCEDURES.—In carrying out the 
purchases and sales required under subparagraph (A), the 
Secretary shall, to the maximum extent practicable, use 
competitive procedures, including the receiving, offering, 
and accepting of bids, when entering into contracts with 
eligible entities and bioenergy producers, provided that 
such procedures are consistent with the purposes of 
subparagraph (A). 
‘‘(C) LIMITATION.—The purchase and sale of eligible 
commodities under subparagraph (A) shall only be made 
in crop years in which such purchases and sales are nec-
essary to ensure that the program authorized under section 
156 of the Federal Agriculture Improvement and Reform 
Act (7 U.S.C. 7272) is operated at no cost to the Federal 
Government by avoiding forfeitures to the Commodity 
Credit Corporation. 
‘‘(2) NOTICE.— 
‘‘(A) IN
GENERAL.—As soon as practicable after the 
date of enactment of the Food, Conservation, and Energy 
Act of 2008 and each September 1 thereafter through Sep-
tember 1, 2012, the Secretary shall provide notice to eligible 
entities and bioenergy producers of the quantity of eligible 
commodities that shall be made available for purchase 
and sale for the crop year following the date of the notice 
under this section. 
‘‘(B) REESTIMATES.—Not later than the January 1, 
April 1, and July 1 of the calendar year following the 
date of a notice under subparagraph (A), the Secretary 
shall reestimate the quantity of eligible commodities deter-
mined under subparagraph (A), and provide notice and 
make purchases and sales based on such reestimates. 
‘‘(3) COMMODITY CREDIT CORPORATION INVENTORY.— 
‘‘(A) DISPOSITIONS.— 
‘‘(i) BIOENERGY AND GENERALLY.—Except as pro-
vided in clause (ii), to the extent that an eligible com-
modity is owned and held in inventory by the Com-
modity Credit Corporation (accumulated pursuant to 
the program authorized under section 156 of the Fed-
eral Agriculture Improvement and Reform Act (7 
U.S.C. 7272)), the Secretary shall— 
‘‘(I) sell the eligible commodity to bioenergy 
producers under this section consistent with para-
graph (1)(C);
H. R. 6124—438 
‘‘(II) dispose of the eligible commodity in 
accordance with section 156(f)(2) of that Act; or 
‘‘(III) otherwise dispose of the eligible com-
modity through the buyback of certificates of quota 
entry. 
‘‘(ii) PRESERVATION
OF
OTHER
AUTHORITIES.— 
Nothing in this section limits the use of other authori-
ties for the disposition of an eligible commodity held 
in the inventory of the Commodity Credit Corporation 
for nonfood use or otherwise in a manner that does 
not increase the net quantity of sugar available for 
human consumption in the United States market, con-
sistent with section 156(f)(1) of the Federal Agriculture 
Improvement and Reform Act (7 U.S.C. 7272(f)(1)). 
‘‘(B) 
EMERGENCY
SHORTAGES.—Notwithstanding 
subparagraph (A), if there is an emergency shortage of 
sugar for human consumption in the United States market 
that is caused by a war, flood, hurricane, or other natural 
disaster, or other similar event, the Secretary may dispose 
of an eligible commodity that is owned and held in inven-
tory by the Commodity Credit Corporation (accumulated 
pursuant to the program authorized under section 156 
of the Federal Agriculture Improvement and Reform Act 
(7 U.S.C. 7272)) through disposition as authorized under 
section 156(f) of that Act or through the use of any other 
authority of the Commodity Credit Corporation. 
‘‘(4) TRANSFER RULE; STORAGE FEES.— 
‘‘(A) GENERAL
TRANSFER
RULE.—Except with regard 
to emergency dispositions under paragraph (3)(B) and as 
provided in subparagraph (C), the Secretary shall ensure 
that bioenergy producers that purchase eligible commod-
ities pursuant to this section take possession of the eligible 
commodities within 30 calendar days of the date of such 
purchase from the Commodity Credit Corporation. 
‘‘(B) PAYMENT OF STORAGE FEES PROHIBITED.— 
‘‘(i) IN GENERAL.—The Secretary shall, to the max-
imum extent practicable, carry out this section in a 
manner that ensures no storage fees are paid by the 
Commodity Credit Corporation in the administration 
of this section. 
‘‘(ii) EXCEPTION.—Clause (i) shall not apply with 
respect to any commodities owned and held in inven-
tory by the Commodity Credit Corporation (accumu-
lated pursuant to the program authorized under section 
156 of the Federal Agriculture Improvement and 
Reform Act (7 U.S.C. 7272)). 
‘‘(C) OPTION TO PREVENT STORAGE FEES.— 
‘‘(i) IN GENERAL.—The Secretary may enter into 
contracts with bioenergy producers to sell eligible 
commodities to such producers prior in time to entering 
into contracts with eligible entities to purchase the 
eligible commodities to be used to satisfy the contracts 
entered into with the bioenergy producers. 
‘‘(ii) SPECIAL
TRANSFER
RULE.—If the Secretary 
makes a sale and purchase referred to in clause (i), 
the Secretary shall ensure that the bioenergy producer 
that purchased eligible commodities takes possession
H. R. 6124—439 
of such commodities within 30 calendar days of the 
date the Commodity Credit Corporation purchases the 
eligible commodities. 
‘‘(5) RELATION TO OTHER LAWS.—If sugar that is subject 
to a marketing allotment under part VII of subtitle B of title 
III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa 
et seq.) is the subject of a payment under this section, the 
sugar shall be considered marketed and shall count against 
a processor’s allocation of an allotment under such part, as 
applicable. 
‘‘(6) FUNDING.—The Secretary shall use the funds, facilities, 
and authorities of the Commodity Credit Corporation, including 
the use of such sums as are necessary, to carry out this section. 
‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BCAP.—The term ‘BCAP’ means the Biomass Crop 
Assistance Program established under this section. 
‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP project area’ 
means an area that— 
‘‘(A) has specified boundaries that are submitted to 
the Secretary by the project sponsor and subsequently 
approved by the Secretary; 
‘‘(B) includes producers with contract acreage that will 
supply a portion of the renewable biomass needed by a 
biomass conversion facility; and 
‘‘(C) is physically located within an economically prac-
ticable distance from the biomass conversion facility. 
‘‘(3) CONTRACT
ACREAGE.—The term ‘contract acreage’ 
means eligible land that is covered by a BCAP contract entered 
into with the Secretary. 
‘‘(4) ELIGIBLE CROP.— 
‘‘(A) IN GENERAL.—The term ‘eligible crop’ means a 
crop of renewable biomass. 
‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ does not 
include— 
‘‘(i) any crop that is eligible to receive payments 
under title I of the Food, Conservation, and Energy 
Act of 2008 or an amendment made by that title; 
or 
‘‘(ii) any plant that is invasive or noxious or has 
the potential to become invasive or noxious, as deter-
mined by the Secretary, in consultation with other 
appropriate Federal or State departments and agen-
cies. 
‘‘(5) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible land’ includes 
agricultural and nonindustrial private forest lands (as 
defined in section 5(c) of the Cooperative Forestry Assist-
ance Act of 1978 (16 U.S.C. 2103a(c))). 
‘‘(B) EXCLUSIONS.—The term ‘eligible land’ does not 
include— 
‘‘(i) Federal- or State-owned land; 
‘‘(ii) land that is native sod, as of the date of 
enactment of the Food, Conservation, and Energy Act 
of 2008;
H. R. 6124—440 
‘‘(iii) land enrolled in the conservation reserve pro-
gram established under subchapter B of chapter 1 
of subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3831 et seq.); 
‘‘(iv) land enrolled in the wetlands reserve program 
established under subchapter C of chapter 1 of subtitle 
D of title XII of that Act (16 U.S.C. 3837 et seq.); 
or 
‘‘(v) land enrolled in the grassland reserve program 
established under subchapter D of chapter 2 of subtitle 
D of title XII of that Act (16 U.S.C. 3838n et seq.). 
‘‘(6) ELIGIBLE MATERIAL.— 
‘‘(A) IN GENERAL.—The term ‘eligible material’ means 
renewable biomass. 
‘‘(B) EXCLUSIONS.—The term ‘eligible material’ does not 
include— 
‘‘(i) any crop that is eligible to receive payments 
under title I of the Food, Conservation, and Energy 
Act of 2008 or an amendment made by that title; 
‘‘(ii) animal waste and byproducts (including fats, 
oils, greases, and manure); 
‘‘(iii) food waste and yard waste; or 
‘‘(iv) algae. 
‘‘(7) PRODUCER.—The term ‘producer’ means an owner or 
operator of contract acreage that is physically located within 
a BCAP project area. 
‘‘(8) PROJECT SPONSOR.—The term ‘project sponsor’ means— 
‘‘(A) a group of producers; or 
‘‘(B) a biomass conversion facility. 
‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall estab-
lish and administer a Biomass Crop Assistance Program to— 
‘‘(1) support the establishment and production of eligible 
crops for conversion to bioenergy in selected BCAP project 
areas; and 
‘‘(2) assist agricultural and forest land owners and opera-
tors with collection, harvest, storage, and transportation of 
eligible material for use in a biomass conversion facility. 
‘‘(c) BCAP PROJECT AREA.— 
‘‘(1) IN GENERAL.—The Secretary shall provide financial 
assistance to producers of eligible crops in a BCAP project 
area. 
‘‘(2) SELECTION OF PROJECT AREAS.— 
‘‘(A) IN GENERAL.—To be considered for selection as 
a BCAP project area, a project sponsor shall submit to 
the Secretary a proposal that includes, at a minimum— 
‘‘(i) a description of the eligible land and eligible 
crops of each producer that will participate in the 
proposed BCAP project area; 
‘‘(ii) a letter of commitment from a biomass conver-
sion facility that the facility will use the eligible crops 
intended to be produced in the proposed BCAP project 
area; 
‘‘(iii) evidence that the biomass conversion facility 
has sufficient equity available, as determined by the 
Secretary, if the biomass conversion facility is not oper-
ational at the time the proposal is submitted to the 
Secretary; and
H. R. 6124—441 
‘‘(iv) any other appropriate information about the 
biomass conversion facility or proposed biomass conver-
sion facility that gives the Secretary a reasonable 
assurance that the plant will be in operation by the 
time that the eligible crops are ready for harvest. 
‘‘(B) BCAP PROJECT
AREA
SELECTION
CRITERIA.—In 
selecting BCAP project areas, the Secretary shall con-
sider— 
‘‘(i) the volume of the eligible crops proposed to 
be produced in the proposed BCAP project area and 
the probability that such crops will be used for the 
purposes of the BCAP; 
‘‘(ii) the volume of renewable biomass projected 
to be available from sources other than the eligible 
crops grown on contract acres; 
‘‘(iii) the anticipated economic impact in the pro-
posed BCAP project area; 
‘‘(iv) the opportunity for producers and local inves-
tors to participate in the ownership of the biomass 
conversion facility in the proposed BCAP project area; 
‘‘(v) the participation rate by— 
‘‘(I) beginning farmers or ranchers (as defined 
in accordance with section 343(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1991(a))); or 
‘‘(II) 
socially 
disadvantaged 
farmers 
or 
ranchers (as defined in section 2501(e) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279(e))); 
‘‘(vi) the impact on soil, water, and related 
resources; 
‘‘(vii) the variety in biomass production approaches 
within a project area, including (as appropriate)— 
‘‘(I) agronomic conditions; 
‘‘(II) harvest and postharvest practices; and 
‘‘(III) monoculture and polyculture crop mixes; 
‘‘(viii) the range of eligible crops among project 
areas; and 
‘‘(ix) any additional information, as determined by 
the Secretary. 
‘‘(3) CONTRACT.— 
‘‘(A) IN GENERAL.—On approval of a BCAP project area 
by the Secretary, each producer in the BCAP project area 
shall enter into a contract directly with the Secretary. 
‘‘(B) MINIMUM TERMS.—At a minimum, contracts shall 
include terms that cover— 
‘‘(i) an agreement to make available to the Sec-
retary, or to an institution of higher education or other 
entity designated by the Secretary, such information 
as the Secretary considers to be appropriate to promote 
the production of eligible crops and the development 
of biomass conversion technology; 
‘‘(ii) compliance with the highly erodible land con-
servation requirements of subtitle B of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) 
and the wetland conservation requirements of subtitle 
C of title XII of that Act (16 U.S.C. 3821 et seq.);
H. R. 6124—442 
‘‘(iii) the implementation of (as determined by the 
Secretary)— 
‘‘(I) a conservation plan; or 
‘‘(II) a forest stewardship plan or an equivalent 
plan; and 
‘‘(iv) any additional requirements the Secretary 
considers appropriate. 
‘‘(C) DURATION.—A contract under this subsection shall 
have a term of up to— 
‘‘(i) 5 years for annual and perennial crops; or 
‘‘(ii) 15 years for woody biomass. 
‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In carrying out 
this subsection, the Secretary shall provide for the preservation 
of cropland base and yield history applicable to the land 
enrolled in a BCAP contract. 
‘‘(5) PAYMENTS.— 
‘‘(A) IN GENERAL.—The Secretary shall make establish-
ment and annual payments directly to producers to support 
the establishment and production of eligible crops on con-
tract acreage. 
‘‘(B) AMOUNT
OF
ESTABLISHMENT
PAYMENTS.—The 
amount of an establishment payment under this subsection 
shall be up to 75 percent of the costs of establishing an 
eligible perennial crop covered by the contract, including— 
‘‘(i) the cost of seeds and stock for perennials; 
‘‘(ii) the cost of planting the perennial crop, as 
determined by the Secretary; and 
‘‘(iii) in the case of nonindustrial private forestland, 
the costs of site preparation and tree planting. 
‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the amount 
of an annual payment under this subsection shall be 
determined by the Secretary. 
‘‘(ii) REDUCTION.—The Secretary shall reduce an 
annual payment by an amount determined to be appro-
priate by the Secretary, if— 
‘‘(I) an eligible crop is used for purposes other 
than the production of energy at the biomass 
conversion facility; 
‘‘(II) an eligible crop is delivered to the biomass 
conversion facility; 
‘‘(III) the producer receives a payment under 
subsection (d); 
‘‘(IV) the producer violates a term of the con-
tract; or 
‘‘(V) there are such other circumstances, as 
determined by the Secretary to be necessary to 
carry out this section. 
‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, STORAGE, AND 
TRANSPORTATION.— 
‘‘(1) IN GENERAL.—The Secretary shall make a payment 
for the delivery of eligible material to a biomass conversion 
facility to— 
‘‘(A) a producer of an eligible crop that is produced 
on BCAP contract acreage; or 
‘‘(B) a person with the right to collect or harvest eligible 
material.
H. R. 6124—443 
‘‘(2) PAYMENTS.— 
‘‘(A) COSTS
COVERED.—A payment under this sub-
section shall be in an amount described in subparagraph 
(B) for— 
‘‘(i) collection; 
‘‘(ii) harvest; 
‘‘(iii) storage; and 
‘‘(iv) transportation to a biomass conversion 
facility. 
‘‘(B) AMOUNT.—Subject to paragraph (3), the Secretary 
may provide matching payments at a rate of $1 for each 
$1 per ton provided by the biomass conversion facility, 
in an amount equal to not more than $45 per ton for 
a period of 2 years. 
‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP CONTRACT ACRE-
AGE.—As a condition of the receipt of annual payment under 
subsection (c), a producer receiving a payment under this sub-
section for collection, harvest, storage or transportation of an 
eligible crop produced on BCAP acreage shall agree to a reduc-
tion in the annual payment. 
‘‘(e) REPORT.—Not later than 4 years after the date of enactment 
of the Food, Conservation, and Energy Act of 2008, the Secretary 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report on the dissemination by the Sec-
retary of the best practice data and information gathered from 
participants receiving assistance under this section. 
‘‘(f) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use to carry out this section such sums 
as are necessary for each of fiscal years 2008 through 2012. 
‘‘SEC. 9012. FOREST BIOMASS FOR ENERGY. 
‘‘(a) IN GENERAL.—The Secretary, acting through the Forest 
Service, shall conduct a competitive research and development pro-
gram to encourage use of forest biomass for energy. 
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to compete under the 
program under this section include— 
‘‘(1) the Forest Service (acting through Research and 
Development); 
‘‘(2) other Federal agencies; 
‘‘(3) State and local governments; 
‘‘(4) Indian tribes; 
‘‘(5) land-grant colleges and universities; and 
‘‘(6) private entities. 
‘‘(c) PRIORITY FOR PROJECT SELECTION.—In carrying out this 
section, the Secretary shall give priority to projects that— 
‘‘(1) develop technology and techniques to use low-value 
forest biomass, such as byproducts of forest health treatments 
and hazardous fuels reduction, for the production of energy; 
‘‘(2) develop processes that integrate production of energy 
from forest biomass into biorefineries or other existing manufac-
turing streams; 
‘‘(3) develop new transportation fuels from forest biomass; 
and 
‘‘(4) improve the growth and yield of trees intended for 
renewable energy production.
H. R. 6124—444 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $15,000,000 for each 
of fiscal years 2009 through 2012. 
‘‘SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY WOOD ENERGY PLAN.—The term ‘commu-
nity wood energy plan’ means an assessment of— 
‘‘(A) available feedstocks necessary to supply a commu-
nity wood energy system; and 
‘‘(B) the long-term feasibility of supplying and oper-
ating a community wood energy system. 
‘‘(2) COMMUNITY WOOD ENERGY SYSTEM.— 
‘‘(A) IN GENERAL.—The term ‘community wood energy 
system’ means an energy system that— 
‘‘(i) primarily services public facilities owned or 
operated by State or local governments, including 
schools, town halls, libraries, and other public 
buildings; and 
‘‘(ii) uses woody biomass as the primary fuel. 
‘‘(B) INCLUSIONS.—The term ‘community wood energy 
system’ includes single facility central heating, district 
heating, combined heat and energy systems, and other 
related biomass energy systems. 
‘‘(b) GRANT PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary, acting through the Chief 
of the Forest Service, shall establish a program to be known 
as the ‘Community Wood Energy Program’ to provide— 
‘‘(A) grants of up to $50,000 to State and local govern-
ments (or designees) to develop community wood energy 
plans; and 
‘‘(B) competitive grants to State and local governments 
to acquire or upgrade community wood energy systems. 
‘‘(2) CONSIDERATIONS.—In selecting applicants for grants 
under paragraph (1)(B), the Secretary shall consider— 
‘‘(A) the energy efficiency of the proposed system; 
‘‘(B) the cost effectiveness of the proposed system; and 
‘‘(C) other conservation and environmental criteria that 
the Secretary considers appropriate. 
‘‘(3) USE OF PLAN.—A State or local government applying 
to receive a competitive grant described in paragraph (1)(B) 
shall submit to the Secretary as part of the grant application 
the applicable community wood energy plan. 
‘‘(c) LIMITATION.—A community wood energy system acquired 
with grant funds provided under subsection (b)(1)(B) shall not 
exceed an output of— 
‘‘(1) 50,000,000 Btu per hour for heating; and 
‘‘(2) 2 megawatts for electric power production. 
‘‘(d) MATCHING FUNDS.—A State or local government that 
receives a grant under subsection (b) shall contribute an amount 
of non-Federal funds towards the development of the community 
wood energy plan, or acquisition of the community wood energy 
systems that is at least equal to the amount of grant funds received 
by the State or local government under that subsection. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2009 through 2012.’’.
H. R. 6124—445 
(b) CONFORMING AMENDMENT.—The Biomass Research and 
Development Act of 2000 (7 U.S.C. 8601 et seq.) is repealed. 
SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY. 
(a) IN GENERAL.—The Secretary of Agriculture, the Secretary 
of Energy, the Administrator of the Environmental Protection 
Agency, and the Secretary of Transportation (referred to in this 
section as the ‘‘Secretaries’’), shall jointly conduct a study that 
includes— 
(1) an assessment of the infrastructure needs for expanding 
the domestic production, transport, and distribution of biofuels 
given current and likely future market trends; 
(2) recommendations for infrastructure needs and develop-
ment approaches, taking into account cost and other associated 
factors; and 
(3) a report that includes— 
(A) a summary of infrastructure needs; 
(B) an analysis of alternative development approaches 
to meeting the needs described in subparagraph (A), 
including cost, siting, and other regulatory issues; and 
(C) 
recommendations 
for 
specific 
infrastructure 
development actions to be taken. 
(b) SCOPE OF STUDY.— 
(1) IN GENERAL.—In conducting the study described in sub-
section (a), the Secretaries shall address— 
(A) current and likely future market trends for biofuels 
through calendar year 2025; 
(B) current and future availability of feedstocks; 
(C) water resource needs, including water requirements 
for biorefineries; 
(D) shipping and storage needs for biomass feedstock 
and biofuels, including the adequacy of rural roads; and 
(E) modes of transportation and delivery for biofuels 
(including shipment by rail, truck, pipeline or barge) and 
associated infrastructure issues. 
(2) CONSIDERATIONS.—In addressing the issues described 
in paragraph (1), the Secretaries shall consider— 
(A) the effects of increased tank truck, rail, and barge 
transport on existing infrastructure and safety; 
(B) the feasibility of shipping biofuels through pipelines 
in existence as the date of enactment of this Act; 
(C) the development of new biofuels pipelines, including 
siting, financing, timing, and other economic issues; 
(D) the implications of various biofuel blend levels 
on infrastructure needs; 
(E) the implications of various approaches to infra-
structure development on resource use and conservation; 
(F) regional differences in biofuels infrastructure needs; 
and 
(G) other infrastructure issues, as determined by the 
Secretaries. 
(c) IMPLEMENTATION.—In carrying out this section, the Secre-
taries — 
(1) shall— 
(A) consult with individuals and entities with interest 
or expertise in the areas described in subsection (b);
H. R. 6124—446 
(B) to the extent available, use the information devel-
oped and results of the related studies authorized under 
sections 243 and 245 of the Energy Independence and 
Security Act of 2007 (Public Law 110–140; 121 Stat. 1540, 
1546)); and 
(C) submit to Congress the report required under sub-
section (a)(3), including— 
(i) in the Senate— 
(I) the Committee on Agriculture, Nutrition, 
and Forestry ; 
(II) the Committee on Commerce, Science, and 
Transportation; 
(III) the Committee on Energy and Natural 
Resources; and 
(IV) the Committee on Environment and 
Public Works; and 
(ii) in the House of Representatives— 
(I) the Committee on Agriculture; 
(II) the Committee on Energy and Commerce; 
(III) the Committee on Transportation and 
Infrastructure; and 
(IV) the Committee on Science and Tech-
nology; and 
(2) may issue a solicitation for a competition to select 
a contractor to support the Secretaries. 
SEC. 9003. RENEWABLE FERTILIZER STUDY. 
(a) IN GENERAL.—Not later than 1 year after the date of receipt 
of appropriations to carry out this section, the Secretary shall— 
(1) conduct a study to assess the current state of knowledge 
regarding the potential for the production of fertilizer from 
renewable energy sources in rural areas, including— 
(A) identification of the critical challenges to commer-
cialization of rural production of nitrogen and phosphorus- 
based fertilizer from renewables; 
(B) the most promising processes and technologies for 
renewable fertilizer production; 
(C) the potential cost-competitiveness of renewable fer-
tilizer; and 
(D) the potential impacts of renewable fertilizer on 
fossil fuel use and the environment; and 
(2) submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report describing the results 
of the study. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $1,000,000 for fiscal 
year 2009. 
TITLE X—HORTICULTURE AND 
ORGANIC AGRICULTURE 
SEC. 10001. DEFINITIONS. 
In this title: 
(1) SPECIALTY CROP.—The term ‘‘specialty crop’’ has the 
meaning given the term in section 3 of the Specialty Crops
H. R. 6124—447 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
108–465). 
(2) STATE DEPARTMENT OF AGRICULTURE.—The term ‘‘State 
department of agriculture’’ means the agency, commission, or 
department of a State government responsible for protecting 
and promoting agriculture in the State. 
Subtitle A—Horticulture Marketing and 
Information 
SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRI-
CULTURE COMMODITY PURCHASE PROCESS. 
(a) EVALUATION REQUIRED.—The Secretary shall arrange to 
have performed an independent evaluation of the purchasing proc-
esses (including the budgetary, statutory, and regulatory authority 
underlying the processes) used by the Department of Agriculture 
to implement the requirement that funds available under section 
32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be principally 
devoted to perishable agricultural commodities. 
(b) SUBMISSION OF RESULTS.—Not later than 18 months after 
the date of the enactment of this Act, the Secretary shall submit 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report on the results of the evaluation. 
SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES. 
Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 
608e–1(a)), reenacted with amendments by the Agricultural Mar-
keting Agreement Act of 1937, is amended in the matter preceding 
the first proviso in the first sentence by inserting ‘‘clementines,’’ 
after ‘‘nectarines,’’. 
SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRI-
CULTURE. 
Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C. 
2204g(a)) is amended— 
(1) by striking ‘‘In 1998’’ and inserting the following: 
‘‘(1) IN GENERAL.—In 1998’’; and 
(2) by adding at the end the following: 
‘‘(2) INCLUSION OF SPECIALTY CROPS.—Effective beginning 
with the census of agriculture required to be conducted in 
2008, the Secretary shall conduct as part of each census of 
agriculture a census of specialty crops (as that term is defined 
in section 3 of the Specialty Crops Competitiveness Act of 
2004 (7 U.S.C. 1621 note; Public Law 108-465)).’’. 
SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER 
INFORMATION. 
(a) REGIONS AND MEMBERS.—Section 1925(b)(2) of the Mush-
room Promotion, Research, and Consumer Information Act of 1990 
(7 U.S.C. 6104(b)(2)) is amended— 
(1) in subparagraph (B), by striking ‘‘4 regions’’ and 
inserting ‘‘3 regions’’; 
(2) in subparagraph (D), by striking ‘‘35,000,000 pounds’’ 
and inserting ‘‘50,000,000 pounds’’; and
H. R. 6124—448 
(3) by striking subparagraph (E) and inserting the fol-
lowing: 
‘‘(E) ADDITIONAL MEMBERS.—In addition to the mem-
bers appointed pursuant to paragraph (1), and subject to 
the 9-member limit of members on the Council provided 
in that paragraph, the Secretary shall appoint additional 
members to the council from a region that attains addi-
tional pounds of production as follows: 
‘‘(i) If the annual production of a region is greater 
than 110,000,000 pounds, but less than or equal to 
180,000,000 pounds, the region shall be represented 
by 1 additional member. 
‘‘(ii) If the annual production of a region is greater 
than 180,000,000 pounds, but less than or equal to 
260,000,000 pounds, the region shall be represented 
by 2 additional members. 
‘‘(iii) If the annual production of a region is greater 
than 260,000,000 pounds, the region shall be rep-
resented by 3 additional members.’’. 
(b) POWERS AND DUTIES OF COUNCIL.—Section 1925(c) of the 
Mushroom Promotion, Research, and Consumer Information Act 
of 1990 (7 U.S.C. 6104(c)) is amended— 
(1) by redesignating paragraphs (6), (7), and (8) as para-
graphs (7), (8), and (9), respectively; and 
(2) by inserting after paragraph (5) the following: 
‘‘(6) to develop and propose to the Secretary programs 
for good agricultural and good handling practices and related 
activities for mushrooms;’’. 
SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES. 
(a) INITIATIVE AUTHORIZED.—The Secretary may carry out a 
food safety education program to educate the public and persons 
in the fresh produce industry about— 
(1) scientifically proven practices for reducing microbial 
pathogens on fresh produce; and 
(2) methods of reducing the threat of cross-contamination 
of fresh produce through sanitary handling practices. 
(b) COOPERATION.—The Secretary may carry out the education 
program in cooperation with public and private partners. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary to carry out this section 
$1,000,000 for each of fiscal years 2008 through 2012, to remain 
available until expended. 
SEC. 10106. FARMERS’ MARKET PROMOTION PROGRAM. 
Section 6 of the Farmer-to-Consumer Direct Marketing Act 
of 1976 (7 U.S.C. 3005) is amended— 
(1) in subsection (a), by inserting ‘‘and to promote direct 
producer-to-consumer marketing’’ before the period at the end; 
(2) in subsection (b)(1)— 
(A) in subparagraph (A), by inserting ‘‘agri-tourism 
activities,’’ after ‘‘programs,’’; and 
(B) in subparagraph (B)— 
(i) by inserting ‘‘agri-tourism activities,’’ after ‘‘pro-
grams,’’ and 
(ii) by striking ‘‘infrastructure’’ and inserting ‘‘mar-
keting opportunities’’;
H. R. 6124—449 
(3) in subsection (c)(1), by inserting ‘‘or a producer network 
or association’’ after ‘‘cooperative’’; and 
(4) by striking subsection (e) and inserting the following: 
‘‘(e) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this section— 
‘‘(A) $3,000,000 for fiscal year 2008; 
‘‘(B) $5,000,000 for each of fiscal years 2009 through 
2010; and 
‘‘(C) $10,000,000 for each of fiscal years 2011 and 2012. 
‘‘(2) USE OF FUNDS.—Not less than 10 percent of the funds 
used to carry out this section in a fiscal year under paragraph 
(1) shall be used to support the use of electronic benefits trans-
fers for Federal nutrition programs at farmers’ markets. 
‘‘(3) INTERDEPARTMENTAL COORDINATION.—In carrying out 
this subsection, the Secretary shall ensure coordination between 
the various agencies to the maximum extent practicable. 
‘‘(4) LIMITATION.—Funds described in paragraph (2)— 
‘‘(A) may not be used for the ongoing cost of carrying 
out any project; and 
‘‘(B) shall only be provided to eligible entities that 
demonstrate a plan to continue to provide EBT card access 
at 1 or more farmers’ markets following the receipt of 
the grant.’’. 
SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION. 
(a) IN GENERAL.—The Secretary shall— 
(1) carry out market news activities to provide timely price 
and shipment information of specialty crops in the United 
States; and 
(2) use funds made available under subsection (b) to 
increase the reporting levels for specialty crops in effect on 
the date of enactment of this Act. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—In addition to any 
other funds made available through annual appropriations for 
market news services, there is authorized to be appropriated to 
carry out this section $9,000,000 for each of fiscal years 2008 
through 2012, to remain available until expended. 
SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR 
GRADES AND STANDARDS AND OTHER PURPOSES. 
(a) IN GENERAL.—The Secretary shall initiate procedures under 
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
with amendments by the Agricultural Marketing Agreement Act 
of 1937, to determine whether it would be appropriate to establish 
a Federal marketing order for Hass avocados relating to grades 
and standards and for other purposes under that Act. 
(b) EXPEDITED PROCEDURES.— 
(1) PROPOSAL FOR AN ORDER.—An organization of domestic 
avocado producers in existence on the date of enactment of 
this Act may request the issuance of, and submit to the Sec-
retary a proposal for, an order described in subsection (a). 
(2) PUBLICATION OF PROPOSAL.—Not later than 60 days 
after the date on which the Secretary receives a proposed 
order under paragraph (1), the Secretary shall initiate proce-
dures described in subsection (a) to determine whether the 
proposed order should proceed.
H. R. 6124—450 
(c) EFFECTIVE DATE.—Any order issued under this section shall 
become effective not later than 15 months after the date on which 
the Secretary initiates procedures under the Agricultural Adjust-
ment Act (7 U.S.C. 601 et seq.), reenacted with amendments by 
the Agricultural Marketing Agreement Act of 1937. 
SEC. 10109. SPECIALTY CROP BLOCK GRANTS. 
(a) DEFINITION OF SPECIALTY CROP.—Section 3(1) of the Spe-
cialty Crops Competitiveness Act of 2004 (Public Law 108–465; 
7 U.S.C. 1621 note) is amended by inserting ‘‘horticulture and’’ 
before ‘‘nursery’’. 
(b) DEFINITION OF STATE.—Section 3(2) of the Specialty Crops 
Competitiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 
note) is amended by striking ‘‘and the Commonwealth of Puerto 
Rico’’ and inserting ‘‘the Commonwealth of Puerto Rico, Guam, 
American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands’’. 
(c) SPECIALTY CROP BLOCK GRANTS.—Section 101 of the Spe-
cialty Crops Competitiveness Act of 2004 (Public Law 108–465; 
7 U.S.C. 1621 note) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Subject to the appropriation of funds 
to carry out this section’’ and inserting ‘‘Using the funds 
made available under subsection (j)’’; and 
(B) by striking ‘‘2009’’ and inserting ‘‘2012’’; 
(2) in subsection (b), by striking ‘‘appropriated pursuant 
to the authorization of appropriations in subsection (i)’’ and 
inserting ‘‘made available under subsection (j)’’; 
(3) by striking subsection (c) and inserting the following: 
‘‘(c) MINIMUM GRANT AMOUNT.—Notwithstanding subsection 
(b), each State shall receive a grant under this section for each 
fiscal year in an amount that is at least equal to the higher 
of— 
‘‘(1) $100,000; or 
‘‘(2) 1⁄3 of 1 percent of the total amount of funding made 
available to carry out this section for the fiscal year.’’; and 
(4) by striking subsection (i) and inserting the following: 
‘‘(i) REALLOCATION.— 
‘‘(1) IN GENERAL.—The Secretary shall reallocate to other 
States in accordance with paragraph (2) any amounts made 
available for a fiscal year under this section that are not obli-
gated or expended by a date during that fiscal year determined 
by the Secretary. 
‘‘(2) PRO RATA ALLOCATION.—The Secretary shall allocate 
funds described in paragraph (1) pro rata to the remaining 
States that applied during the specified grant application 
period. 
‘‘(3) USE OF REALLOCATED FUNDS.—Funds allocated to a 
State under this subsection shall be used by the State only 
to carry out projects that were previously approved in the 
State plan of the State. 
‘‘(j) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary of Agriculture shall make grants under this 
section, using— 
‘‘(1) $10,000,000 for fiscal year 2008; 
‘‘(2) $49,000,000 for fiscal year 2009; and
H. R. 6124—451 
‘‘(3) $55,000,000 for each of fiscal years 2010 through 
2012.’’. 
Subtitle B—Pest and Disease Management 
SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER 
PREVENTION. 
(a) IN GENERAL.—Subtitle A of the Plant Protection Act (7 
U.S.C. 7711 et seq.) is amended by adding at the end the following: 
‘‘SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER 
PREVENTION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) EARLY PLANT PEST DETECTION AND SURVEILLANCE.— 
The term ‘early plant pest detection and surveillance’ means 
the full range of activities undertaken to find newly introduced 
plant pests, whether the plant pests are new to the United 
States or new to certain areas of the United States, before— 
‘‘(A) the plant pests become established; or 
‘‘(B) the plant pest infestations become too large and 
costly to eradicate or control. 
‘‘(2) SPECIALTY CROP.—The term ‘specialty crop’ has the 
meaning given the term in section 3 of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
108–465). 
‘‘(3) STATE DEPARTMENT OF AGRICULTURE.—The term ‘State 
department of agriculture’ means an agency of a State that 
has a legal responsibility to perform early plant pest detection 
and surveillance activities. 
‘‘(b) EARLY
PLANT
PEST
DETECTION
AND
SURVEILLANCE 
IMPROVEMENT PROGRAM.— 
‘‘(1) COOPERATIVE AGREEMENTS.—The Secretary shall enter 
into a cooperative agreement with each State department of 
agriculture that agrees to conduct early plant pest detection 
and surveillance activities. 
‘‘(2) CONSULTATION.—In carrying out this subsection, the 
Secretary shall consult with— 
‘‘(A) the National Plant Board; and 
‘‘(B) other interested parties. 
‘‘(3) FEDERAL
ADVISORY
COMMITTEE
ACT.—The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to 
consultations under this subsection. 
‘‘(4) APPLICATION.— 
‘‘(A) IN GENERAL.—A State department of agriculture 
seeking to enter into a cooperative agreement under this 
subsection shall submit to the Secretary an application 
containing such information as the Secretary may require. 
‘‘(B) 
NOTIFICATION.—The 
Secretary 
shall 
notify 
applicants of— 
‘‘(i) the requirements to be imposed on a State 
department of agriculture for auditing of, and reporting 
on, the use of any funds provided by the Secretary 
under the cooperative agreement; 
‘‘(ii) the criteria to be used to ensure that early 
pest detection and surveillance activities supported
H. R. 6124—452 
under the cooperative agreement are based on sound 
scientific data or thorough risk assessments; and 
‘‘(iii) the means of identifying pathways of pest 
introductions. 
‘‘(5) USE OF FUNDS.— 
‘‘(A) PLANT PEST DETECTION AND SURVEILLANCE ACTIVI-
TIES.—A State department of agriculture that receives 
funds under this subsection shall use the funds to carry 
out early plant pest detection and surveillance activities 
approved by the Secretary to prevent the introduction or 
spread of a plant pest. 
‘‘(B) SUBAGREEMENTS.—Nothing in this subsection pre-
vents a State department of agriculture from using funds 
received under paragraph (4) to enter into subagreements 
with political subdivisions of the State that have legal 
responsibilities relating to agricultural plant pest and dis-
ease surveillance. 
‘‘(C) NON-FEDERAL SHARE.—The non-Federal share of 
the cost of carrying out a cooperative agreement under 
this section may be provided in-kind, including through 
provision of such indirect costs of the cooperative agreement 
as the Secretary considers to be appropriate. 
‘‘(D) ABILITY TO PROVIDE FUNDS.—The Secretary shall 
not take the ability to provide non-Federal costs to carry 
out a cooperative agreement entered into under subpara-
graph (A) into consideration when deciding whether to 
enter into a cooperative agreement with a State department 
of agriculture. 
‘‘(6) SPECIAL
FUNDING
CONSIDERATIONS.—The Secretary 
shall provide funds to a State department of agriculture if 
the Secretary determines that— 
‘‘(A) the State department of agriculture is in a State 
that has a high risk of being affected by 1 or more plant 
pests or diseases, taking into consideration— 
‘‘(i) the number of international ports of entry in 
the State; 
‘‘(ii) the volume of international passenger and 
cargo entry into the State; 
‘‘(iii) the geographic location of the State and if 
the location or types of agricultural commodities pro-
duced in the State are conducive to agricultural pest 
and disease establishment due to the climate, crop 
diversity, or natural resources (including unique plant 
species) of the State; and 
‘‘(iv) whether the Secretary has determined that 
an agricultural pest or disease in the State is a Federal 
concern ; and 
‘‘(B) the early plant pest detection and surveillance 
activities supported with the funds will likely— 
‘‘(i) prevent the introduction and establishment of 
plant pests; and 
‘‘(ii) provide a comprehensive approach to com-
pliment Federal detection efforts. 
‘‘(7) REPORTING
REQUIREMENT.—Not later than 90 days 
after the date of completion of an early plant pest detection 
and surveillance activity conducted by a State department of 
agriculture using funds provided under this section, the State
H. R. 6124—453 
department of agriculture shall submit to the Secretary a report 
that describes the purposes and results of the activities. 
‘‘(c) THREAT IDENTIFICATION AND MITIGATION PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a 
threat identification and mitigation program to determine and 
address threats to the domestic production of crops. 
‘‘(2) REQUIREMENTS.—In conducting the program estab-
lished under paragraph (1), the Secretary shall— 
‘‘(A) develop risk assessments of the potential threat 
to the agricultural industry of the United States from for-
eign sources; 
‘‘(B) collaborate with the National Plant Board; and 
‘‘(C) implement action plans for high consequence plant 
pest and diseases to assist in preventing the introduction 
and widespread dissemination of new plant pest and dis-
ease threats in the United States. 
‘‘(3) REPORTS.—Not later than 1 year after the date of 
enactment of this paragraph, and annually thereafter, the Sec-
retary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report on the action 
plans described in paragraph (2), including an accounting of 
funds expended on the action plans. 
‘‘(d) SPECIALTY CROP CERTIFICATION AND RISK MANAGEMENT 
SYSTEMS.—The Secretary shall provide funds and technical assist-
ance to specialty crop growers, organizations representing specialty 
crop growers, and State and local agencies working with specialty 
crop 
growers 
and 
organizations 
for 
the 
development 
and 
implementation of— 
‘‘(1) audit-based certification systems, such as best manage-
ment practices— 
‘‘(A) to address plant pests; and 
‘‘(B) to mitigate the risk of plant pests in the movement 
of plants and plant products; and 
‘‘(2) nursery plant pest risk management systems, in 
collaboration with the nursery industry, research institutions, 
and other appropriate entities— 
‘‘(A) to enable growers to identify and prioritize nursery 
plant pests and diseases of regulatory significance; 
‘‘(B) to prevent the introduction, establishment, and 
spread of those plant pests and diseases; and 
‘‘(C) to reduce the risk of and mitigate those plant 
pests and diseases. 
‘‘(e) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall make available to carry out this section— 
‘‘(1) $12,000,000 for fiscal year 2009; 
‘‘(2) $45,000,000 for fiscal year 2010; 
‘‘(3) $50,000,000 for fiscal year 2011; and 
‘‘(4) $50,000,000 for fiscal year 2012 and each fiscal year 
thereafter.’’. 
(b) CONGRESSIONAL DISAPPROVAL.—Congress disapproves the 
rule submitted by the Secretary of Agriculture relating to cost- 
sharing for animal and plant health emergency programs (68 Fed. 
Reg. 40541 (2003)), and such rule shall have no force or effect.
H. R. 6124—454 
SEC. 10202. NATIONAL CLEAN PLANT NETWORK. 
(a) IN GENERAL.—The Secretary shall establish a program to 
be known as the ‘‘National Clean Plant Network’’ (referred to in 
this section as the ‘‘Program’’). 
(b) REQUIREMENTS.—Under the Program, the Secretary shall 
establish a network of clean plant centers for diagnostic and 
pathogen elimination services to— 
(1) produce clean propagative plant material; and 
(2) maintain blocks of pathogen-tested plant material in 
sites located throughout the United States. 
(c) AVAILABILITY OF CLEAN PLANT SOURCE MATERIAL.—Clean 
plant source material may be made available to— 
(1) a State for a certified plant program of the State; 
and 
(2) private nurseries and producers. 
(d) CONSULTATION AND COLLABORATION.—In carrying out the 
Program, the Secretary shall— 
(1) consult with State departments of agriculture, land 
grant universities, and NLGCA Institutions (as defined in sec-
tion 1404 of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and 
(2) to the extent practicable and with input from the appro-
priate State officials and industry representatives, use existing 
Federal or State facilities to serve as clean plant centers. 
(e) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary shall use to carry out the Program $5,000,000 
for each of fiscal years 2009 through 2012, to remain available 
until expended. 
SEC. 10203. PLANT PROTECTION. 
(a) REVIEW
OF PAYMENT
OF COMPENSATION.—Section 415(e) 
of the Plant Protection Act (7 U.S.C. 7715(e)) is amended in the 
second sentence by striking ‘‘of longer than 60 days’’. 
(b) SECRETARIAL DISCRETION.—Section 442(c) of the Plant 
Protection Act (7 U.S.C. 7772(c)) is amended by striking ‘‘of longer 
than 60 days’’. 
(c) SUBPOENA AUTHORITY.—Section 423 of the Plant Protection 
Act (7 U.S.C. 7733) is amended— 
(1) by striking subsection (a) and inserting the following: 
‘‘(a) AUTHORITY TO ISSUE.—The Secretary shall have the power 
to subpoena the attendance and testimony of any witness, the 
production of all evidence (including books, papers, documents, elec-
tronically stored information, and other tangible things that con-
stitute or contain evidence), or to require the person to whom 
the subpoena is directed to permit the inspection of premises 
relating to the administration or enforcement of this title or any 
matter under investigation in connection with this title.’’; 
(2) in subsection (b), by striking ‘‘documentary’’; and 
(3) in subsection (c)— 
(A) in the first sentence, by striking ‘‘testimony of 
any witness and the production of documentary evidence’’ 
and inserting ‘‘testimony of any witness, the production 
of evidence, or the inspection of premises’’; and 
(B) in the second sentence, by striking ‘‘question or 
to produce documentary evidence’’ and inserting ‘‘question, 
produce evidence, or permit the inspection of premises’’.
H. R. 6124—455 
(d) WILLFUL VIOLATIONS.—Section 424(b)(1)(A) of the Plant 
Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking ‘‘and 
$500,000 for all violations adjudicated in a single proceeding’’ and 
inserting ‘‘$500,000 for all violations adjudicated in a single pro-
ceeding if the violations do not include a willful violation, and 
$1,000,000 for all violations adjudicated in a single proceeding 
if the violations include a willful violation’’. 
SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVER-
SIGHT OF CERTAIN REGULATED ARTICLES. 
(a) IN GENERAL.—Not later than 18 months after the date 
of enactment of this Act, the Secretary shall— 
(1) take action on each issue identified in the document 
entitled ‘‘Lessons Learned and Revisions under Consideration 
for APHIS’ Biotechnology Framework’’, dated October 4, 2007; 
and 
(2) as the Secretary considers appropriate, promulgate 
regulations to improve the management and oversight of arti-
cles regulated under the Plant Protection Act (7 U.S.C. 7701 
et seq.). 
(b) INCLUSIONS.—In carrying out subsection (a), the Secretary 
shall take actions that are designed to enhance— 
(1) the quality and completeness of records; 
(2) the availability of representative samples; 
(3) the maintenance of identity and control in the event 
of an unauthorized release; 
(4) corrective actions in the event of an unauthorized 
release; 
(5) protocols for conducting molecular forensics; 
(6) clarity in contractual agreements; 
(7) the use of the latest scientific techniques for isolation 
and confinement distances; 
(8) standards for quality management systems and effective 
research; and 
(9) the design of electronic permits to store documents 
and other information relating to the permit and notification 
processes. 
(c) CONSIDERATION.—In carrying out subsection (a), the Sec-
retary shall consider— 
(1) establishing— 
(A) a system of risk-based categories to classify each 
regulated article; 
(B) a means to identify regulated articles (including 
the retention of seed samples); and 
(C) standards for isolation and containment distances; 
and 
(2) requiring permit holders— 
(A) to maintain a positive chain of custody; 
(B) to provide for the maintenance of records; 
(C) to provide for the accounting of material; 
(D) to conduct periodic audits; 
(E) to establish an appropriate training program; 
(F) to provide contingency and corrective action plans; 
and 
(G) to submit reports as the Secretary considers to 
be appropriate.
H. R. 6124—456 
SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND. 
(a) DEFINITIONS.—In this section: 
(1) AUTHORIZED EQUIPMENT.— 
(A) IN
GENERAL.—The term ‘‘authorized equipment’’ 
means any equipment necessary for the management of 
forest land. 
(B) INCLUSIONS.—The term ‘‘authorized equipment’’ 
includes— 
(i) cherry pickers; 
(ii) equipment necessary for— 
(I) the construction of staging and marshalling 
areas; 
(II) the planting of trees; and 
(III) the surveying of forest land; 
(iii) vehicles capable of transporting harvested 
trees; 
(iv) wood chippers; and 
(v) any other appropriate equipment, as deter-
mined by the Secretary. 
(2) FUND.—The term ‘‘Fund’’ means the Pest and Disease 
Revolving Loan Fund established by subsection (b). 
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Agriculture, acting through the Deputy Chief of the State 
and Private Forestry organization. 
(b) ESTABLISHMENT
OF FUND.—There is established in the 
Treasury of the United States a revolving fund, to be known as 
the ‘‘Pest and Disease Revolving Loan Fund’’, consisting of such 
amounts as are appropriated to the Fund under subsection (f). 
(c) EXPENDITURES FROM FUND.— 
(1) IN GENERAL.—Subject to paragraph (2), on request by 
the Secretary, the Secretary of the Treasury shall transfer 
from the Fund to the Secretary such amounts as the Secretary 
determines are necessary to provide loans under subsection 
(e). 
(2) ADMINISTRATIVE EXPENSES.—An amount not exceeding 
10 percent of the amounts in the Fund shall be available 
for each fiscal year to pay the administrative expenses nec-
essary to carry out this section. 
(d) TRANSFERS OF AMOUNTS.— 
(1) IN GENERAL.—The amounts required to be transferred 
to the Fund under this section shall be transferred at least 
monthly from the general fund of the Treasury to the Fund 
on the basis of estimates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall be made in 
amounts subsequently transferred to the extent prior estimates 
were in excess of or less than the amounts required to be 
transferred. 
(e) USES OF FUND.— 
(1) LOANS.— 
(A) IN
GENERAL.—The Secretary shall use amounts 
in the Fund to provide loans to eligible units of local 
government to finance purchases of authorized equipment 
to monitor, remove, dispose of, and replace infested trees 
that are located— 
(i) on land under the jurisdiction of the eligible 
units of local government; and
H. R. 6124—457 
(ii) within the borders of quarantine areas infested 
by plant pests. 
(B) MAXIMUM AMOUNT.—The maximum amount of a 
loan that may be provided by the Secretary to an eligible 
unit of local government under this subsection shall be 
the lesser of— 
(i) the amount that the eligible unit of local govern-
ment has appropriated to finance purchases of author-
ized equipment in accordance with subparagraph (A); 
or 
(ii) $5,000,000. 
(C) INTEREST
RATE.—The interest rate on any loan 
made by the Secretary under this paragraph shall be a 
rate equal to 2 percent. 
(D) REPORT.—Not later than 180 days after the date 
on which an eligible unit of local government receives a 
loan provided by the Secretary under subparagraph (A), 
the eligible unit of local government shall submit to the 
Secretary a report that describes each purchase made by 
the eligible unit of local government using assistance pro-
vided through the loan. 
(2) LOAN REPAYMENT SCHEDULE.— 
(A) IN GENERAL.—To be eligible to receive a loan from 
the Secretary under paragraph (1), in accordance with each 
requirement described in subparagraph (B), an eligible unit 
of local government shall enter into an agreement with 
the Secretary to establish a loan repayment schedule 
relating to the repayment of the loan. 
(B) REQUIREMENTS
RELATING
TO
LOAN
REPAYMENT 
SCHEDULE.—A loan repayment schedule established under 
subparagraph (A) shall require the eligible unit of local 
government— 
(i) to repay to the Secretary of the Treasury, not 
later than 1 year after the date on which the eligible 
unit of local government receives a loan under para-
graph (1), and semiannually thereafter, an amount 
equal to the quotient obtained by dividing— 
(I) the principal amount of the loan (including 
interest); by 
(II) the total quantity of payments that the 
eligible unit of local government is required to 
make during the repayment period of the loan; 
and 
(ii) not later than 20 years after the date on which 
the eligible unit of local government receives a loan 
under paragraph (1), to complete repayment to the 
Secretary of the Treasury of the loan made under 
this section (including interest). 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Fund such sums as are necessary to 
carry out this section. 
SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST 
AND DISEASE PREVENTION ACTIVITIES. 
Section 431 of the Plant Protection Act (7 U.S.C. 7751) is 
amended by adding at the end the following: 
‘‘(f) TRANSFER OF COOPERATIVE AGREEMENT FUND.—
H. R. 6124—458 
‘‘(1) IN GENERAL.—A State may provide to a unit of local 
government in the State described in paragraph (2) any cost- 
sharing assistance or financing mechanism provided to the 
State under a cooperative agreement entered into under this 
Act between the Secretary and the State relating to the eradi-
cation, prevention, control, or suppression of plant pests. 
‘‘(2) REQUIREMENTS.—To be eligible for assistance or 
financing under paragraph (1), a unit of local government shall 
be— 
‘‘(A) engaged in any activity relating to the eradication, 
prevention, control, or suppression of the plant pest infesta-
tion covered under the cooperative agreement between the 
Secretary and the State; and 
‘‘(B) capable of documenting each plant pest infestation 
eradication, prevention, control, or suppression activity gen-
erally carried out by— 
‘‘(i) the Department of Agriculture; or 
‘‘(ii) the State department of agriculture that has 
jurisdiction over the unit of local government.’’. 
Subtitle C—Organic Agriculture 
SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PRO-
GRAM. 
Section 10606 of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 6523) is amended— 
(1) in subsection (a), by striking ‘‘$5,000,000 for fiscal year 
2002’’ and inserting ‘‘$22,000,000 for fiscal year 2008’’; 
(2) in subsection (b)(2), by striking ‘‘$500’’ and inserting 
‘‘$750’’; and 
(3) by adding at the end the following: 
‘‘(c) REPORTING.—Not later than March 1 of each year, the 
Secretary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes the requests 
by, disbursements to, and expenditures for each State under the 
program during the current and previous fiscal year, including 
the number of producers and handlers served by the program 
in the previous fiscal year.’’. 
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES. 
Section 7407 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 5925c) is amended to read as follows: 
‘‘SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES. 
‘‘(a) IN GENERAL.—The Secretary shall collect and report data 
on the production and marketing of organic agricultural products. 
‘‘(b) REQUIREMENTS.—In carrying out subsection (a), the Sec-
retary shall, at a minimum— 
‘‘(1) collect and distribute comprehensive reporting of prices 
relating to organically produced agricultural products; 
‘‘(2) conduct surveys and analysis and publish reports 
relating to organic production, handling, distribution, retail, 
and trend studies (including consumer purchasing patterns); 
and 
‘‘(3) develop surveys and report statistical analysis on 
organically produced agricultural products.
H. R. 6124—459 
‘‘(c) REPORT.—Not later than 180 days after the date of enact-
ment of this subsection, the Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
that— 
‘‘(1) describes the progress that has been made in imple-
menting this section; and 
‘‘(2) identifies any additional production and marketing 
data needs. 
‘‘(d) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this section 
$5,000,000, to remain available until expended. 
‘‘(2) ADDITIONAL
FUNDING.—In addition to funds made 
available under paragraph (1), there are authorized to be appro-
priated to carry out this section not more than $5,000,000 
for each of fiscal years 2008 through 2012, to remain available 
until expended.’’. 
SEC. 10303. NATIONAL ORGANIC PROGRAM. 
Section 2123 of the Organic Foods Production Act of 1990 
(7 U.S.C. 6522) is amended— 
(1) by striking ‘‘There are’’ and inserting the following: 
‘‘(a) IN GENERAL.—There are’’; and 
(2) by adding at the end the following: 
‘‘(b) NATIONAL ORGANIC PROGRAM.—Notwithstanding any other 
provision of law, in order to carry out activities under the national 
organic program established under this title, there are authorized 
to be appropriated— 
‘‘(1) $5,000,000 for fiscal year 2008; 
‘‘(2) $6,500,000 for fiscal year 2009; 
‘‘(3) $8,000,000 for fiscal year 2010; 
‘‘(4) $9,500,000 for fiscal year 2011; 
‘‘(5) $11,000,000 for fiscal year 2012; and 
‘‘(6) in addition to those amounts, such additional sums 
as are necessary for fiscal year 2009 and each fiscal year 
thereafter.’’. 
Subtitle D—Miscellaneous 
SEC. 10401. NATIONAL HONEY BOARD. 
Section 7(c) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4606(c)) is amended by adding at the 
end the following: 
‘‘(12) REFERENDUM REQUIREMENT.— 
‘‘(A) DEFINITION OF EXISTING HONEY BOARD.—The term 
‘existing Honey Board’ means the Honey Board in effect 
on the date of enactment of this paragraph. 
‘‘(B) CONDUCT OF REFERENDA.—Notwithstanding any 
other provision of law, subject to subparagraph (C), the 
order providing for the establishment and operation of the 
existing Honey Board shall continue in force, until the 
Secretary first conducts, at the earliest practicable date, 
but not later than 180 days after the date of enactment 
of this paragraph, referenda on orders to establish a honey
H. R. 6124—460 
packer-importer board or a United States honey producer 
board. 
‘‘(C) REQUIREMENTS.—In conducting referenda under 
subparagraph (B), and in exercising fiduciary responsibil-
ities in any transition to any 1 or more successor boards, 
the Secretary shall— 
‘‘(i) conduct a referendum of eligible United States 
honey producers for the establishment of a marketing 
board solely for United States honey producers; 
‘‘(ii) conduct a referendum of eligible packers, 
importers, and handlers of honey for the establishment 
of a marketing board for packers, importers, and han-
dlers of honey; 
‘‘(iii) notwithstanding the timing of the referenda 
required under clauses (i) and (ii) or of the establish-
ment of any 1 or more successor boards pursuant to 
those referenda, ensure that the rights and interests 
of honey producers, importers, packers, and handlers 
of honey are equitably protected in any disposition 
of the assets, facilities, intellectual property, and pro-
grams of the existing Honey Board and in the transi-
tion to any 1 or more new successor marketing boards; 
‘‘(iv) ensure that the existing Honey Board con-
tinues in operation until such time as the Secretary 
determines that— 
‘‘(I) any 1 or more successor boards, if 
approved, are operational; and 
‘‘(II) the interests of producers, importers, 
packers, and handlers of honey can be equitably 
protected during any remaining period in which 
a referendum on a successor board or the establish-
ment of such a board is pending; and 
‘‘(v) discontinue collection of assessments under 
the order establishing the existing Honey Board on 
the date the Secretary requires that collections com-
mence pursuant to an order approved in a referendum 
by eligible producers or processors and importers of 
honey. 
‘‘(D) HONEY BOARD REFERENDUM.—If 1 or more orders 
are approved pursuant to paragraph (C)— 
‘‘(i) the Secretary shall not be required to conduct 
a continuation referendum on the order in existence 
on the date of enactment of this paragraph; and 
‘‘(ii) that order shall be terminated pursuant to 
the provisions of the order.’’. 
SEC. 10402. IDENTIFICATION OF HONEY. 
(a) IN GENERAL.—Section 203(h) of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1622(h)) is amended— 
(1) by designating the first through sixth sentences as 
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), respectively; 
and 
(2) by adding at the end the following: 
‘‘(6) IDENTIFICATION OF HONEY.— 
‘‘(A) IN GENERAL.—The use of a label or advertising 
material on, or in conjunction with, packaged honey that
H. R. 6124—461 
bears any official certificate of quality, grade mark or state-
ment, continuous inspection mark or statement, sampling 
mark or statement, or any combination of the certificates, 
marks, or statements of the Department of Agriculture 
is hereby prohibited under this Act unless there appears 
legibly and permanently in close proximity (such as on 
the same side(s) or surface(s)) to the certificate, mark, 
or statement, and in at least a comparable size, the 1 
or more names of the 1 or more countries of origin of 
the lot or container of honey, preceded by the words 
‘Product of’ or other words of similar meaning. 
‘‘(B) VIOLATION.—A violation of the requirements of 
subparagraph (A) may be deemed by the Secretary to be 
sufficient cause for debarment from the benefits of this 
Act only with respect to honey.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) take effect on the date that is 1 year after the date of enactment 
of this Act. 
SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 
CROPS. 
(a) GRANTS AUTHORIZED.—The Secretary may make grants 
under this section to an eligible entity described in subsection 
(b)— 
(1) to improve the cost-effective movement of specialty crops 
to local, regional, national, and international markets; and 
(2) to address regional intermodal transportation defi-
ciencies that adversely affect the movement of specialty crops 
to markets inside or outside the United States. 
(b) ELIGIBLE GRANT RECIPIENTS.—Grants may be made under 
this section to any of, or any combination of: 
(1) State and local governments. 
(2) Grower cooperatives. 
(3) National, State, or regional organizations of producers, 
shippers, or carriers. 
(4) Other entities as determined to be appropriate by the 
Secretary. 
(c) MATCHING FUNDS.—The recipient of a grant under this 
section shall contribute an amount of non-Federal funds toward 
the project for which the grant is provided that is at least equal 
to the amount of grant funds received by the recipient under this 
section. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012. 
SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS. 
(a) IN GENERAL.—As soon as practicable after the date of enact-
ment of this Act, the Secretary shall make payments to producers 
of the 2007 crop of asparagus for market loss resulting from imports 
during the 2004 through 2007 crop years. 
(b) PAYMENT RATE.—The payment rate for a payment under 
this section shall be based on the reduction in revenue received 
by asparagus producers associated with imports during the 2004 
through 2007 crop years. 
(c) PAYMENT QUANTITY.—The payment quantity for asparagus 
for which the producers on a farm are eligible for payments under
H. R. 6124—462 
this section shall be equal to the average quantity of the 2003 
crop of asparagus produced by producers on the farm. 
(d) FUNDING.— 
(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
shall make available $15,000,000 of the funds of the Commodity 
Credit Corporation to carry out a program to provide market 
loss payments to producers of asparagus under this section. 
(2) ALLOCATION.—Of the amount made available under 
paragraph (1), the Secretary shall use— 
(A) $7,500,000 to make payments to producers of aspar-
agus for the fresh market; and 
(B) $7,500,000 to make payments to producers of aspar-
agus for the processed or frozen market. 
TITLE XI—LIVESTOCK 
SEC. 11001. LIVESTOCK MANDATORY REPORTING. 
(a) WEB SITE IMPROVEMENTS AND USER EDUCATION.— 
(1) IN GENERAL.—Section 251(g) of the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1636(g)) is amended to read as 
follows: 
‘‘(g) ELECTRONIC REPORTING AND PUBLISHING.— 
‘‘(1) IN GENERAL.—The Secretary shall, to the maximum 
extent practicable, provide for the reporting and publishing 
of the information required under this subtitle by electronic 
means. 
‘‘(2) IMPROVEMENTS AND EDUCATION.— 
‘‘(A) ENHANCED
ELECTRONIC
PUBLISHING.—The Sec-
retary shall develop and implement an enhanced system 
of electronic publishing to disseminate information collected 
pursuant to this subtitle. Such system shall— 
‘‘(i) present information in a format that can be 
readily understood by producers, packers, and other 
market participants; 
‘‘(ii) adhere to the publication deadlines in this 
subtitle; 
‘‘(iii) present information in charts and graphs, 
as appropriate; 
‘‘(iv) present comparative information for prior 
reporting periods, as the Secretary considers appro-
priate; and 
‘‘(v) be updated as soon as practicable after 
information is reported to the Secretary. 
‘‘(B) EDUCATION.—The Secretary shall carry out a 
market news education program to educate the public and 
persons in the livestock and meat industries about— 
‘‘(i) usage of the system developed under subpara-
graph (A); and 
‘‘(ii) interpreting and understanding information 
collected and disseminated through such system.’’. 
(2) APPLICABILITY.— 
(A) ENHANCED
REPORTING.—The Secretary of Agri-
culture shall develop and implement the system required 
under paragraph (2)(A) of section 251(g) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1636(g)), as amended 
by paragraph (1), not later than one year after the date
H. R. 6124—463 
on which the Secretary determines sufficient funds have 
been appropriated pursuant to subsection (c). 
(B) CURRENT
SYSTEM.—Notwithstanding the amend-
ment made by paragraph (1), the Secretary shall continue 
to use the information format for disseminating information 
under subtitle B of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1621 et seq.) in effect on the date of the enactment 
of this Act at least until the date that is two years after 
the date on which the Secretary makes the determination 
referred to in subparagraph (A). 
(b) STUDY AND REPORT.— 
(1) STUDY.—The Secretary shall conduct a study on the 
effects of requiring packer processing plants to report to the 
Secretary information on wholesale pork cuts (including price 
and volume information), including— 
(A) the positive or negative economic effects on pro-
ducers and consumers; and 
(B) the effects of a confidentiality requirement on 
mandatory reporting. 
(2) INFORMATION.—During the period preceding the submis-
sion of the report under paragraph (3), the Secretary may 
collect, and each packer processing plant shall provide, such 
information as is necessary to enable the Secretary to conduct 
the study required under paragraph (1). 
(3) REPORT.—Not later than one year after the date of 
the enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report on the results of the study conducted under 
paragraph (1). 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
SEC. 11002. COUNTRY OF ORIGIN LABELING. 
Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1638 et seq.) is amended— 
(1) in section 281(2)(A)— 
(A) in clause (v), by striking ‘‘and’’; 
(B) in clause (vi), by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(vii) meat produced from goats; 
‘‘(viii) chicken, in whole and in part; 
‘‘(ix) ginseng; 
‘‘(x) pecans; and 
‘‘(xi) macadamia nuts.’’; 
(2) in section 282— 
(A) in subsection (a), by striking paragraphs (2) and 
(3) and inserting the following: 
‘‘(2) DESIGNATION OF COUNTRY OF ORIGIN FOR BEEF, LAMB, 
PORK, CHICKEN, AND GOAT MEAT.— 
‘‘(A) UNITED STATES COUNTRY OF ORIGIN.—A retailer 
of a covered commodity that is beef, lamb, pork, chicken, 
or goat meat may designate the covered commodity as 
exclusively having a United States country of origin only
H. R. 6124—464 
if the covered commodity is derived from an animal that 
was— 
‘‘(i) exclusively born, raised, and slaughtered in 
the United States; 
‘‘(ii) born and raised in Alaska or Hawaii and 
transported for a period of not more than 60 days 
through Canada to the United States and slaughtered 
in the United States; or 
‘‘(iii) present in the United States on or before 
July 15, 2008, and once present in the United States, 
remained continuously in the United States. 
‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— 
‘‘(i) IN
GENERAL.—A retailer of a covered com-
modity that is beef, lamb, pork, chicken, or goat meat 
that is derived from an animal that is— 
‘‘(I) not exclusively born, raised, and slaugh-
tered in the United States, 
‘‘(II) born, raised, or slaughtered in the United 
States, and 
‘‘(III) not imported into the United States for 
immediate slaughter, 
may designate the country of origin of such covered 
commodity as all of the countries in which the animal 
may have been born, raised, or slaughtered. 
‘‘(ii) 
RELATION
TO
GENERAL
REQUIREMENT.— 
Nothing in this subparagraph alters the mandatory 
requirement to inform consumers of the country of 
origin of covered commodities under paragraph (1). 
‘‘(C) IMPORTED FOR IMMEDIATE SLAUGHTER.—A retailer 
of a covered commodity that is beef, lamb, pork, chicken, 
or goat meat that is derived from an animal that is 
imported into the United States for immediate slaughter 
shall designate the origin of such covered commodity as— 
‘‘(i) the country from which the animal was 
imported; and 
‘‘(ii) the United States. 
‘‘(D) FOREIGN
COUNTRY
OF
ORIGIN.—A retailer of a 
covered commodity that is beef, lamb, pork, chicken, or 
goat meat that is derived from an animal that is not 
born, raised, or slaughtered in the United States shall 
designate a country other than the United States as the 
country of origin of such commodity. 
‘‘(E) GROUND BEEF, PORK, LAMB, CHICKEN, AND GOAT.— 
The notice of country of origin for ground beef, ground 
pork, ground lamb, ground chicken, or ground goat shall 
include— 
‘‘(i) a list of all countries of origin of such ground 
beef, ground pork, ground lamb, ground chicken, or 
ground goat; or 
‘‘(ii) a list of all reasonably possible countries of 
origin of such ground beef, ground pork, ground lamb, 
ground chicken, or ground goat. 
‘‘(3) DESIGNATION OF COUNTRY OF ORIGIN FOR FISH.— 
‘‘(A) IN GENERAL.—A retailer of a covered commodity 
that is farm-raised fish or wild fish may designate the 
covered commodity as having a United States country of 
origin only if the covered commodity—
H. R. 6124—465 
‘‘(i) in the case of farm-raised fish, is hatched, 
raised, harvested, and processed in the United States; 
and 
‘‘(ii) in the case of wild fish, is— 
‘‘(I) harvested in the United States, a territory 
of the United States, or a State, or by a vessel 
that is documented under chapter 121 of title 46, 
United States Code, or registered in the United 
States; and 
‘‘(II) processed in the United States, a territory 
of the United States, or a State, including the 
waters thereof, or aboard a vessel that is docu-
mented under chapter 121 of title 46, United 
States Code, or registered in the United States. 
‘‘(B) DESIGNATION
OF
WILD
FISH
AND
FARM-RAISED 
FISH.—The notice of country of origin for wild fish and 
farm-raised fish shall distinguish between wild fish and 
farm-raised fish. 
‘‘(4) DESIGNATION OF COUNTRY OF ORIGIN FOR PERISHABLE 
AGRICULTURAL COMMODITIES, GINSENG, PEANUTS, PECANS, AND 
MACADAMIA NUTS.— 
‘‘(A) IN GENERAL.—A retailer of a covered commodity 
that is a perishable agricultural commodity, ginseng, pea-
nut, pecan, or macadamia nut may designate the covered 
commodity as having a United States country of origin 
only if the covered commodity is exclusively produced in 
the United States. 
‘‘(B) STATE, REGION, LOCALITY OF THE UNITED STATES.— 
With respect to a covered commodity that is a perishable 
agricultural commodity, ginseng, peanut, pecan, or maca-
damia nut produced exclusively in the United States, des-
ignation by a retailer of the State, region, or locality of 
the United States where such commodity was produced 
shall be sufficient to identify the United States as the 
country of origin.’’; and 
(B) by striking subsection (d) and inserting the fol-
lowing: 
‘‘(d) AUDIT VERIFICATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Secretary may conduct an audit 
of any person that prepares, stores, handles, or distributes 
a covered commodity for retail sale to verify compliance with 
this subtitle (including the regulations promulgated under sec-
tion 284(b)). 
‘‘(2) RECORD REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A person subject to an audit under 
paragraph (1) shall provide the Secretary with verification 
of the country of origin of covered commodities. Records 
maintained in the course of the normal conduct of the 
business of such person, including animal health papers, 
import or customs documents, or producer affidavits, may 
serve as such verification. 
‘‘(B) PROHIBITION
ON
REQUIREMENT
OF
ADDITIONAL 
RECORDS.—The Secretary may not require a person that 
prepares, stores, handles, or distributes a covered com-
modity to maintain a record of the country of origin of 
a covered commodity other than those maintained in the
H. R. 6124—466 
course of the normal conduct of the business of such per-
son.’’; and 
(3) in section 283— 
(A) by striking subsections (a) and (c); 
(B) by redesignating subsection (b) as subsection (a); 
(C) in subsection (a) (as so redesignated), by striking 
‘‘retailer’’ and inserting ‘‘retailer or person engaged in the 
business of supplying a covered commodity to a retailer’’; 
and 
(D) by adding at the end the following new subsection: 
‘‘(b) FINES.—If, on completion of the 30-day period described 
in subsection (a)(2), the Secretary determines that the retailer 
or person engaged in the business of supplying a covered commodity 
to a retailer has— 
‘‘(1) not made a good faith effort to comply with section 
282, and 
‘‘(2) continues to willfully violate section 282 with respect 
to the violation about which the retailer or person received 
notification under subsection (a)(1), 
after providing notice and an opportunity for a hearing before 
the Secretary with respect to the violation, the Secretary may 
fine the retailer or person in an amount of not more than $1,000 
for each violation.’’. 
SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINI-
TIONS. 
Section 3 of the Agricultural Fair Practices Act of 1967 (7 
U.S.C. 2302) is amended— 
(1) by striking ‘‘When used in this Act—’’ and inserting 
‘‘In this Act:’’; 
(2) in subsection (a)— 
(A) by redesignating paragraphs (1) through (4) as 
clauses (i) through (iv), respectively; and 
(B) in clause (iv) (as so redesignated), by striking 
‘‘clause (1), (2), or (3) of this paragraph’’ and inserting 
‘‘clause (i), (ii), or (iii)’’; 
(3) by striking subsection (d); 
(4) by redesignating subsections (a), (b), (c), and (e) as 
paragraphs (3), (4), (2), (1), respectively, indenting appro-
priately, and moving those paragraphs so as to appear in 
numerical order; 
(5) in each paragraph (as so redesignated) that does not 
have a heading, by inserting a heading, in the same style 
as the heading in the amendment made by paragraph (6), 
the text of which is comprised of the term defined in the 
paragraph; 
(6) in paragraph (2) (as so redesignated)— 
(A) by striking ‘‘The term ‘association of producers’ 
means’’ and inserting the following: 
‘‘(2) ASSOCIATION OF PRODUCERS.— 
‘‘(A) IN GENERAL.—The term ‘association of producers’ 
means’’; and 
(B) by adding at the end the following: 
‘‘(B) INCLUSION.—The term ‘association of producers’ 
includes an organization whose membership is exclusively
H. R. 6124—467 
limited to agricultural producers and dedicated to pro-
moting the common interest and general welfare of pro-
ducers of agricultural products.’’; and 
(7) in paragraph (3) (as so redesignated)— 
(A) by striking ‘‘The term’’ and inserting the following: 
‘‘(3) HANDLER.— 
‘‘(A) IN GENERAL.—The term’’; and 
(B) by inserting after clause (iv) of subparagraph (A) 
(as redesignated by subparagraph (A) and paragraph (2)) 
the following: 
‘‘(B) EXCLUSION.—The term ‘handler’ does not include 
a person, other than a packer (as defined in section 201 
of the Packers and Stockyards Act, 1921 (7 U.S.C. 191)), 
that provides custom feeding services for a producer.’’. 
SEC. 11004. ANNUAL REPORT. 
(a) IN GENERAL.—The Packers and Stockyards Act, 1921, is 
amended— 
(1) by redesignating section 416 (7 U.S.C. 229) as section 
417; and 
(2) by inserting after section 415 (7 U.S.C. 228d) the fol-
lowing: 
‘‘SEC. 416. ANNUAL REPORT. 
‘‘(a) IN GENERAL.—Not later than March 1 of each year, the 
Secretary shall submit to Congress and make publicly available 
a report that— 
‘‘(1) states, for the preceding year, separately for livestock 
and poultry and separately by enforcement area category (finan-
cial, trade practice, or competitive acts and practices), with 
respect to investigations into possible violations of this Act— 
‘‘(A) the number of investigations opened; 
‘‘(B) the number of investigations that were closed 
or settled without a referral to the General Counsel of 
the Department of Agriculture; 
‘‘(C) for investigations described in subparagraph (B), 
the length of time from initiation of the investigation to 
when the investigation was closed or settled without the 
filing of an enforcement complaint; 
‘‘(D) the number of investigations that resulted in 
referral to the General Counsel of the Department of Agri-
culture for further action, the number of such referrals 
resolved without administrative enforcement action, and 
the number of enforcement actions filed by the General 
Counsel; 
‘‘(E) for referrals to the General Counsel that resulted 
in an administrative enforcement action being filed, the 
length of time from the referral to the filing of the adminis-
trative action; 
‘‘(F) for referrals to the General Counsel that resulted 
in an administrative enforcement action being filed, the 
length of time from filing to resolution of the administrative 
enforcement action; 
‘‘(G) the number of investigations that resulted in 
referral to the Department of Justice for further action, 
and the number of civil enforcement actions filed by the 
Department of Justice on behalf of the Secretary pursuant 
to such a referral;
H. R. 6124—468 
‘‘(H) for referrals that resulted in a civil enforcement 
action being filed by the Department of Justice, the length 
of time from the referral to the filing of the enforcement 
action; 
‘‘(I) for referrals that resulted in a civil enforcement 
action being filed by the Department of Justice, the length 
of time from the filing of the enforcement action to resolu-
tion; and 
‘‘(J) the average civil penalty imposed in administrative 
or civil enforcement actions for violations of this Act, and 
the total amount of civil penalties imposed in all such 
enforcement actions; and 
‘‘(2) includes any other additional information the Secretary 
considers important to include in the annual report. 
‘‘(b) FORMAT OF INFORMATION PROVIDED.—For subparagraphs 
(C), (E), (F), and (H) of subsection (a)(1), the Secretary may, if 
appropriate due to the number of complaints for a given category, 
provide summary statistics (including range, maximum, minimum, 
mean, and average times) and graphical representations.’’. 
(b) SUNSET.—Effective September 30, 2012, section 416 of the 
Packers and Stockyards Act, 1921, as added by subsection (a)(2), 
is repealed. 
SEC. 11005. PRODUCTION CONTRACTS. 
Title II of the Packers and Stockyards Act, 1921 (7 U.S.C. 
198 et seq.) is amended by adding at the end the following: 
‘‘SEC. 208. PRODUCTION CONTRACTS. 
‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL PRODUCTION 
CONTRACTS.— 
‘‘(1) IN GENERAL.—A poultry grower or swine production 
contract grower may cancel a poultry growing arrangement 
or swine production contract by mailing a cancellation notice 
to the live poultry dealer or swine contractor not later than 
the later of— 
‘‘(A) the date that is 3 business days after the date 
on which the poultry growing arrangement or swine produc-
tion contract is executed; or 
‘‘(B) any cancellation date specified in the poultry 
growing arrangement or swine production contract. 
‘‘(2) DISCLOSURE.—A poultry growing arrangement or swine 
production contract shall clearly disclose— 
‘‘(A) the right of the poultry grower or swine production 
contract grower to cancel the poultry growing arrangement 
or swine production contract; 
‘‘(B) the method by which the poultry grower or swine 
production contract grower may cancel the poultry growing 
arrangement or swine production contract; and 
‘‘(C) the deadline for canceling the poultry growing 
arrangement or swine production contract. 
‘‘(b) REQUIRED DISCLOSURE OF ADDITIONAL CAPITAL INVEST-
MENTS IN PRODUCTION CONTRACTS.— 
‘‘(1) IN GENERAL.—A poultry growing arrangement or swine 
production contract shall contain on the first page a statement 
identified as ‘Additional Capital Investments Disclosure State-
ment’, which shall conspicuously state that additional large 
capital investments may be required of the poultry grower
H. R. 6124—469 
or swine production contract grower during the term of the 
poultry growing arrangement or swine production contract. 
‘‘(2) APPLICATION.—Paragraph (1) shall apply to any poultry 
growing arrangement or swine production contract entered into, 
amended, altered, modified, renewed, or extended after the 
date of the enactment of this section. 
‘‘SEC. 209. CHOICE OF LAW AND VENUE. 
‘‘(a) LOCATION OF FORUM.—The forum for resolving any dispute 
among the parties to a poultry growing arrangement or swine 
production or marketing contract that arises out of the arrangement 
or contract shall be located in the Federal judicial district in which 
the principle part of the performance takes place under the arrange-
ment or contract. 
‘‘(b) CHOICE OF LAW.—A poultry growing arrangement or swine 
production or marketing contract may specify which State’s law 
is to apply to issues governed by State law in any dispute arising 
out of the arrangement or contract, except to the extent that doing 
so is prohibited by the law of the State in which the principal 
part of the performance takes place under the arrangement or 
contract. 
‘‘SEC. 210. ARBITRATION. 
‘‘(a) IN GENERAL.—Any livestock or poultry contract that con-
tains a provision requiring the use of arbitration to resolve any 
controversy that may arise under the contract shall contain a provi-
sion that allows a producer or grower, prior to entering the contract 
to decline to be bound by the arbitration provision. 
‘‘(b) DISCLOSURE.—Any livestock or poultry contract that con-
tains a provision requiring the use of arbitration shall contain 
terms that conspicuously disclose the right of the contract producer 
or grower, prior to entering the contract, to decline the requirement 
to use arbitration to resolve any controversy that may arise under 
the livestock or poultry contract. 
‘‘(c) DISPUTE RESOLUTION.—Any contract producer or grower 
that declines a requirement of arbitration pursuant to subsection 
(b) has the right, to nonetheless seek to resolve any controversy 
that may arise under the livestock or poultry contract, if, after 
the controversy arises, both parties consent in writing to use 
arbitration to settle the controversy. 
‘‘(d) APPLICATION.—Subsections (a) (b) and (c) shall apply to 
any contract entered into, amended, altered, modified, renewed, 
or extended after the date of the enactment of the Food, Conserva-
tion, and Energy Act of 2008 . 
‘‘(e) UNLAWFUL PRACTICE.—Any action by or on behalf of a 
packer, swine contractor, or live poultry dealer that violates this 
section (including any action that has the intent or effect of limiting 
the ability of a producer or grower to freely make a choice described 
in subsection (b)) is an unlawful practice under this Act. 
‘‘(f) REGULATIONS.—The Secretary shall promulgate regulations 
to— 
‘‘(1) carry out this section; and 
‘‘(2) establish criteria that the Secretary will consider in 
determining whether the arbitration process provided in a con-
tract provides a meaningful opportunity for the grower or pro-
ducer to participate fully in the arbitration process.’’.
H. R. 6124—470 
SEC. 11006. REGULATIONS. 
As soon as practicable, but not later than 2 years after the 
date of the enactment of this Act, the Secretary of Agriculture 
shall promulgate regulations with respect to the Packers and Stock-
yards Act, 1921 (7 U.S.C. 181 et seq.) to establish criteria that 
the Secretary will consider in determining— 
(1) whether an undue or unreasonable preference or advan-
tage has occurred in violation of such Act; 
(2) whether a live poultry dealer has provided reasonable 
notice to poultry growers of any suspension of the delivery 
of birds under a poultry growing arrangement; 
(3) when a requirement of additional capital investments 
over the life of a poultry growing arrangement or swine produc-
tion contract constitutes a violation of such Act; and 
(4) if a live poultry dealer or swine contractor has provided 
a reasonable period of time for a poultry grower or a swine 
production contract grower to remedy a breach of contract 
that could lead to termination of the poultry growing arrange-
ment or swine production contract. 
SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADI-
CATION PROGRAM. 
It is the sense of Congress that— 
(1) the Secretary of Agriculture should recognize the threat 
feral swine pose to the domestic swine population and the 
entire livestock industry; 
(2) keeping the United States commercial swine herd free 
of pseudorabies is essential to maintaining and growing pork 
export markets; 
(3) the establishment and continued support of a swine 
surveillance system will assist the swine industry in the moni-
toring, surveillance, and eradication of pseudorabies; and 
(4) pseudorabies eradication is a high priority that the 
Secretary should carry out under the authorities of the Animal 
Health Protection Act. 
SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER 
TICK ERADICATION PROGRAM. 
It is the sense of Congress that— 
(1) the cattle fever tick and the southern cattle tick are 
vectors of the causal agent of babesiosis, a severe and often 
fatal disease of cattle; and 
(2) implementing a national strategic plan for the cattle 
fever tick eradication program is a high priority that the Sec-
retary of Agriculture should carry out in order to— 
(A) prevent the entry of cattle fever ticks into the 
United States; 
(B) enhance and maintain an effective surveillance pro-
gram to rapidly detect any cattle fever tick incursions; 
and 
(C) research, identify, and procure the tools and knowl-
edge necessary to prevent and eradicate cattle fever ticks 
in the United States. 
SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER. 
(a) FUNDING.—Section 375(e)(6) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking 
subparagraphs (B) and (C) and inserting the following:
H. R. 6124—471 
‘‘(B) MANDATORY FUNDING.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use to carry 
out this section $1,000,000 for fiscal year 2008, to remain 
available until expended. 
‘‘(C) AUTHORIZATION
OF
APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $10,000,000 for each of fiscal years 2008 
through 2012.’’. 
(b) REPEAL OF REQUIREMENT TO PRIVATIZE REVOLVING FUND.— 
(1) IN GENERAL.—Section 375 of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2008j) is amended by 
striking subsection (j). 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) takes effect on May 1, 2007. 
SEC. 11010. TRICHINAE CERTIFICATION PROGRAM. 
(a) VOLUNTARY TRICHINAE CERTIFICATION.— 
(1) ESTABLISHMENT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Agriculture shall 
establish a voluntary trichinae certification program. Such pro-
gram shall include the facilitation of the export of pork products 
and certification services related to such products. 
(2) REGULATIONS.—The Secretary shall issue final regula-
tions to implement the program under paragraph (1) not later 
than 90 days after the date of the enactment of this Act. 
(3) REPORT.—If final regulations are not published in 
accordance with paragraph (2) within 90 days of the date of 
the enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report containing— 
(A) an explanation of why the final regulations have 
not been issued in accordance with paragraph (2); and 
(B) the date on which the Secretary expects to issue 
such final regulations. 
(b) FUNDING.—Subject to the availability of appropriations 
under subsection (d)(1)(A) of section 10405 of the Animal Health 
Protection Act (7 U.S.C. 8304), as added by subsection (c), the 
Secretary shall use not less than $6,200,000 of the funds made 
available under such subsection to carry out subsection (a). 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 10405 of the 
Animal Health Protection Act (7 U.S.C. 8304) is amended by adding 
at the end the following new subsection: 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There is authorized to be appropriated— 
‘‘(A) $1,500,000 for each of fiscal years 2008 through 
2012 to carry out section 11010 of the Food, Conservation, 
and Energy Act of 2008; and 
‘‘(B) such sums as may be necessary for each of fiscal 
years 2008 through 2012 to carry out this section. 
‘‘(2) AVAILABILITY.—Funds appropriated under paragraph 
(1) shall remain available until expended.’’. 
SEC. 11011. LOW PATHOGENIC DISEASES. 
The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is 
amended— 
(1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by 
striking ‘‘of longer than 60 days’’;
H. R. 6124—472 
(2) in section 10409(b) (7 U.S.C. 8308(b))— 
(A) by redesignating paragraph (2) as paragraph (3); 
(B) by inserting after paragraph (1) the following new 
paragraph: 
‘‘(2) SPECIFIC COOPERATIVE PROGRAMS.—The Secretary shall 
compensate industry participants and State agencies that 
cooperate with the Secretary in carrying out operations and 
measures under subsection (a) for 100 percent of eligible costs 
relating to cooperative programs involving Federal, State, and 
industry participants to control diseases of low pathogenicity 
in accordance with regulations issued by the Secretary.’’; and 
(C) in paragraph (3) (as so redesignated), by striking 
‘‘of longer than 60 days’’; and 
(3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by striking 
‘‘of longer than 60 days’’. 
SEC. 11012. ANIMAL PROTECTION. 
(a) WILLFUL VIOLATIONS.—Section 10414(b)(1)(A) of the Animal 
Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is amended by 
striking clause (iii) and inserting the following: 
‘‘(iii) for all violations adjudicated in a single pro-
ceeding— 
‘‘(I) $500,000 if the violations do not include 
a willful violation; or 
‘‘(II) $1,000,000 if the violations include 1 or 
more willful violations.’’. 
(b) SUBPOENA AUTHORITY.—Section 10415(a)(2) of the Animal 
Health Protection Act (7 U.S.C. 8314) is amended 
(1) by striking subparagraph (A) and inserting the fol-
lowing: 
‘‘(A) IN GENERAL.—The Secretary shall have the power 
to subpoena the attendance and testimony of any witness, 
the production of all evidence (including books, papers, 
documents, electronically stored information, and other tan-
gible things that constitute or contain evidence), or to 
require the person to whom the subpoena is directed to 
permit the inspection of premises relating to the adminis-
tration or enforcement of this title or any matter under 
investigation in connection with this title.’’; 
(2) in subparagraph (B), by striking ‘‘documentary’’; and 
(3) in subparagraph (C)— 
(A) in clause (i), by striking ‘‘testimony of any witness 
and the production of documentary evidence’’ and inserting 
‘‘testimony of any witness, the production of evidence, or 
the inspection of premises’’; and 
(B) in clause (ii), by striking ‘‘question or to produce 
documentary evidence’’ and inserting ‘‘question, produce 
evidence, or permit the inspection of premises’’. 
SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 
(a) IN GENERAL.—The Secretary of Agriculture may enter into 
a cooperative agreement with an eligible entity to carry out a 
project under a national aquatic animal health plan under the 
authority of the Secretary under section 10411 of the Animal Health 
Protection Act (7 U.S.C. 8310) for the purpose of detecting, control-
ling, or eradicating diseases of aquaculture species and promoting 
species-specific best management practices.
H. R. 6124—473 
(b) COOPERATIVE AGREEMENTS BETWEEN ELIGIBLE ENTITIES 
AND THE SECRETARY.— 
(1) DUTIES.—As a condition of entering into a cooperative 
agreement with the Secretary under this section, an eligible 
entity shall agree to— 
(A) assume responsibility for the non-Federal share 
of the cost of carrying out the project under the national 
aquatic health plan, as determined by the Secretary in 
accordance with paragraph (2); and 
(B) act in accordance with applicable disease and spe-
cies specific best management practices relating to activi-
ties to be carried out under such project. 
(2) NON-FEDERAL SHARE.—The Secretary shall determine 
the non-Federal share of the cost of carrying out a project 
under the national aquatic health plan on a case-by-case basis 
for each such project. Such non-Federal share may be provided 
in cash or in-kind. 
(c) APPLICABILITY OF OTHER LAWS.—In carrying out this section, 
the Secretary may make use of the authorities under the Animal 
Health Protection Act (7 U.S.C. 8301 et seq.), including the 
authority to carry out operations and measures to detect, control, 
and eradicate pests and diseases and the authority to pay claims 
arising out of the destruction of any animal, article, or means 
of conveyance. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated such sums as may be necessary to carry out 
this section for each of fiscal years 2008 through 2012. 
(e) ELIGIBLE
ENTITY
DEFINED.—In this section, the term 
‘‘eligible entity’’ means a State, a political subdivision of a State, 
Indian tribe, or other appropriate entity, as determined by the 
Secretary of Agriculture. 
SEC. 11014. STUDY ON BIOENERGY OPERATIONS. 
(a) STUDY.—The Secretary of Agriculture shall conduct a study 
to evaluate the role of animal manure as a source of fertilizer 
and its potential additional uses. Such study shall include— 
(1) a determination of the extent to which animal manure 
is utilized as fertilizer in agricultural operations by type 
(including species and agronomic practices employed) and size; 
(2) an evaluation of the potential impact on consumers 
and on agricultural operations (by size) resulting from limita-
tions being placed on the utilization of animal manure as 
fertilizer; and 
(3) an evaluation of the effects on agriculture production 
contributable to the increased competition for animal manure 
use due to bioenergy production, including as a feedstock or 
a replacement for fossil fuels. 
(b) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate the results 
of the study conducted under subsection (a).
H. R. 6124—474 
SEC. 
11015. 
INTERSTATE 
SHIPMENT 
OF 
MEAT 
AND 
POULTRY 
INSPECTED BY FEDERAL AND STATE AGENCIES FOR 
CERTAIN SMALL ESTABLISHMENTS. 
(a) MEAT AND MEAT PRODUCTS.—The Federal Meat Inspection 
Act (21 U.S.C. 601 et seq.) is amended by adding at the end 
the following: 
‘‘TITLE V—INSPECTIONS BY FEDERAL 
AND STATE AGENCIES 
‘‘SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL 
AND STATE AGENCIES FOR CERTAIN SMALL ESTABLISH-
MENTS. 
‘‘(a) DEFINITIONS.— 
‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate 
State agency’ means a State agency described in section 301(b). 
‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated per-
sonnel’ means inspection personnel of a State agency that have 
undergone all necessary inspection training and certification 
to assist the Secretary in the administration and enforcement 
of this Act, including rules and regulations issued under this 
Act. 
‘‘(3) 
ELIGIBLE
ESTABLISHMENT.—The 
term 
‘eligible 
establishment’ means an establishment that is in compliance 
with— 
‘‘(A) the State inspection program of the State in which 
the establishment is located; and 
‘‘(B) this Act, including rules and regulations issued 
under this Act. 
‘‘(4) MEAT ITEM.—The term ‘meat item’ means— 
‘‘(A) a portion of meat; and 
‘‘(B) a meat food product. 
‘‘(5) 
SELECTED
ESTABLISHMENT.—The 
term 
‘selected 
establishment’ means an eligible establishment that is selected 
by the Secretary, in coordination with the appropriate State 
agency of the State in which the eligible establishment is 
located, under subsection (b) to ship carcasses, portions of car-
casses, and meat items in interstate commerce. 
‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary, 
in coordination with the appropriate State agency of the State 
in which an establishment is located, may select the establish-
ment to ship carcasses, portions of carcasses, and meat items 
in interstate commerce, and place on each carcass, portion 
of a carcass, and meat item shipped in interstate commerce 
a Federal mark, stamp, tag, or label of inspection, if— 
‘‘(A) the carcass, portion of carcass, or meat item quali-
fies for the mark, stamp, tag, or label of inspection under 
the requirements of this Act; 
‘‘(B) the establishment is an eligible establishment; 
and 
‘‘(C) inspection services for the establishment are pro-
vided by designated personnel.
H. R. 6124—475 
‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out para-
graph (1), the Secretary, in coordination with an appropriate 
State agency, shall not select an establishment that— 
‘‘(A) on average, employs more than 25 employees 
(including supervisory and nonsupervisory employees), as 
defined by the Secretary; 
‘‘(B) as of the date of the enactment of this section, 
ships in interstate commerce carcasses, portions of car-
casses, or meat items that are inspected by the Secretary 
in accordance with this Act; 
‘‘(C)(i) is a Federal establishment; 
‘‘(ii) was a Federal establishment that was reorganized 
on a later date under the same name or a different name 
or person by the person, firm, or corporation that controlled 
the establishment as of the date of the enactment of this 
section; or 
‘‘(iii) was a State establishment as of the date of the 
enactment of this section that— 
‘‘(I) as of the date of the enactment of this section, 
employed more than 25 employees; and 
‘‘(II) was reorganized on a later date by the person, 
firm, or corporation that controlled the establishment 
as of the date of the enactment of this section; 
‘‘(D) is in violation of this Act; 
‘‘(E) is located in a State that does not have a State 
inspection program; or 
‘‘(F) is the subject of a transition carried out in accord-
ance with a procedure developed by the Secretary under 
paragraph (3)(A). 
‘‘(3) ESTABLISHMENTS
THAT
EMPLOY
MORE
THAN
EMPLOYEES.— 
‘‘(A) DEVELOPMENT
OF
PROCEDURE.—The Secretary 
may develop a procedure to transition to a Federal 
establishment any establishment under this section that, 
on average, consistently employs more than 25 employees. 
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.— 
‘‘(i) IN
GENERAL.—A State establishment that 
employs more than 25 employees but less than 35 
employees as of the date of the enactment of this 
section may be selected as a selected establishment 
under this subsection. 
‘‘(ii) PROCEDURES.—A State establishment shall be 
subject to the procedures established under subpara-
graph (A) beginning on the date that is 3 years after 
the effective date described in subsection (j). 
‘‘(c) REIMBURSEMENT
OF STATE COSTS.—The Secretary shall 
reimburse a State for costs related to the inspection of selected 
establishments in the State in accordance with Federal require-
ments in an amount of not less than 60 percent of eligible State 
costs. 
‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.— 
‘‘(1) IN
GENERAL.—The Secretary shall designate an 
employee of the Federal Government as State coordinator for 
each appropriate State agency— 
‘‘(A) to provide oversight and enforcement of this title; 
and
H. R. 6124—476 
‘‘(B) to oversee the training and inspection activities 
of designated personnel of the State agency. 
‘‘(2) SUPERVISION.—A State coordinator shall be under the 
direct supervision of the Secretary. 
‘‘(3) DUTIES OF STATE COORDINATOR.— 
‘‘(A) IN
GENERAL.—A State coordinator shall visit 
selected establishments with a frequency that is appro-
priate to ensure that selected establishments are operating 
in a manner that is consistent with this Act (including 
regulations and policies under this Act). 
‘‘(B) QUARTERLY REPORTS.—A State coordinator shall, 
on a quarterly basis, submit to the Secretary a report 
that describes the status of each selected establishment 
that is under the jurisdiction of the State coordinator with 
respect to the level of compliance of each selected establish-
ment with the requirements of this Act. 
‘‘(C) IMMEDIATE
NOTIFICATION
REQUIREMENT.—If a 
State coordinator determines that any selected establish-
ment that is under the jurisdiction of the State coordinator 
is in violation of any requirement of this Act, the State 
coordinator shall— 
‘‘(i) immediately notify the Secretary of the viola-
tion; and 
‘‘(ii) deselect the selected establishment or suspend 
inspection at the selected establishment. 
‘‘(4) PERFORMANCE
EVALUATIONS.—Performance evalua-
tions of State coordinators designated under this subsection 
shall be conducted by the Secretary as part of the Federal 
agency management control system. 
‘‘(e) AUDITS.— 
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL 
OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years 
after the effective date described in subsection (j), and not 
less often than every 3 years thereafter, the Inspector General 
of the Department of Agriculture shall conduct an audit of 
each activity taken by the Secretary under this section for 
the period covered by the audit to determine compliance with 
this section. 
‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE 
UNITED STATES.—Not earlier than 3 years, nor later than 5 
years, after the date of the enactment of this section, the 
Comptroller General of the United States shall conduct an 
audit of the implementation of this section to determine— 
‘‘(A) the effectiveness of the implementation of this 
section; and 
‘‘(B) the number of selected establishments selected 
by the Secretary to ship carcasses, portions of carcasses, 
or meat items under this section. 
‘‘(f) TECHNICAL ASSISTANCE DIVISION.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 days after the 
effective date described in subsection (j), the Secretary shall 
establish in the Food Safety and Inspection Service of the 
Department of Agriculture a technical assistance division to 
coordinate the initiatives of any other appropriate agency of 
the Department of Agriculture to provide—
H. R. 6124—477 
‘‘(A) outreach, education, and training to very small 
or certain small establishments (as defined by the Sec-
retary); and 
‘‘(B) grants to appropriate State agencies to provide 
outreach, technical assistance, education, and training to 
very small or certain small establishments (as defined by 
the Secretary). 
‘‘(2) PERSONNEL.—The technical assistance division shall 
be comprised of individuals that, as determined by the Sec-
retary— 
‘‘(A) are of a quantity sufficient to carry out the duties 
of the technical assistance division; and 
‘‘(B) possess appropriate qualifications and expertise 
relating to the duties of the technical assistance division. 
‘‘(g) TRANSITION GRANTS.—The Secretary may provide grants 
to appropriate State agencies to assist the appropriate State agen-
cies in helping establishments covered by title III to transition 
to selected establishments. 
‘‘(h) VIOLATIONS.—Any selected establishment that the Sec-
retary determines to be in violation of any requirement of this 
Act shall be transitioned to a Federal establishment in accordance 
with a procedure developed by the Secretary under subsection 
(b)(3)(A). 
‘‘(i) EFFECT.—Nothing in this section limits the jurisdiction 
of the Secretary with respect to the regulation of meat and meat 
products under this Act. 
‘‘(j) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—This section takes effect on the date 
on which the Secretary, after providing a period of public com-
ment (including through the conduct of public meetings or 
hearings), promulgates final regulations to carry out this sec-
tion. 
‘‘(2) REQUIREMENT.—Not later than 18 months after the 
date of the enactment of this section, the Secretary shall 
promulgate final regulations in accordance with paragraph (1).’’. 
(b) POULTRY AND POULTRY PRODUCTS.—The Poultry Products 
Inspection Act (21 U.S.C. 451 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FED-
ERAL 
AND 
STATE 
AGENCIES 
FOR 
CERTAIN 
SMALL 
ESTABLISHMENTS. 
‘‘(a) DEFINITIONS.— 
‘‘(1) APPROPRIATE STATE AGENCY.—The term ‘appropriate 
State agency’ means a State agency described in section 5(a)(1). 
‘‘(2) DESIGNATED PERSONNEL.—The term ‘designated per-
sonnel’ means inspection personnel of a State agency that have 
undergone all necessary inspection training and certification 
to assist the Secretary in the administration and enforcement 
of this Act, including rules and regulations issued under this 
Act. 
‘‘(3) 
ELIGIBLE
ESTABLISHMENT.—The 
term 
‘eligible 
establishment’ means an establishment that is in compliance 
with— 
‘‘(A) the State inspection program of the State in which 
the establishment is located; and
H. R. 6124—478 
‘‘(B) this Act, including rules and regulations issued 
under this Act. 
‘‘(4) POULTRY ITEM.—The term ‘poultry item’ means— 
‘‘(A) a portion of poultry; and 
‘‘(B) a poultry product. 
‘‘(5) 
SELECTED
ESTABLISHMENT.—The 
term 
‘selected 
establishment’ means an eligible establishment that is selected 
by the Secretary, in coordination with the appropriate State 
agency of the State in which the eligible establishment is 
located, under subsection (b) to ship poultry items in interstate 
commerce. 
‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIPMENTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary, 
in coordination with the appropriate State agency of the State 
in which an establishment is located, may select the establish-
ment to ship poultry items in interstate commerce, and place 
on each poultry item shipped in interstate commerce a Federal 
mark, stamp, tag, or label of inspection, if— 
‘‘(A) the poultry item qualifies for the Federal mark, 
stamp, tag, or label of inspection under the requirements 
of this Act; 
‘‘(B) the establishment is an eligible establishment; 
and 
‘‘(C) inspection services for the establishment are pro-
vided by designated personnel. 
‘‘(2) PROHIBITED ESTABLISHMENTS.—In carrying out para-
graph (1), the Secretary, in coordination with an appropriate 
State agency, shall not select an establishment that— 
‘‘(A) on average, employs more than 25 employees 
(including supervisory and nonsupervisory employees), as 
defined by the Secretary; 
‘‘(B) as of the date of the enactment of this section, 
ships in interstate commerce carcasses, portions of car-
casses, or poultry items that are inspected by the Secretary 
in accordance with this Act; 
‘‘(C)(i) is a Federal establishment; 
‘‘(ii) was a Federal establishment as of the date of 
the enactment of this section, and was reorganized on 
a later date under the same name or a different name 
or person by the person, firm, or corporation that controlled 
the establishment as of the date of the enactment of this 
section; or 
‘‘(iii) was a State establishment as of the date of the 
enactment of this section that— 
‘‘(I) as of the date of the enactment of this section, 
employed more than 25 employees; and 
‘‘(II) was reorganized on a later date by the person, 
firm, or corporation that controlled the establishment 
as of the date of the enactment of this section; 
‘‘(D) is in violation of this Act; 
‘‘(E) is located in a State that does not have a State 
inspection program; or 
‘‘(F) is the subject of a transition carried out in accord-
ance with a procedure developed by the Secretary under 
paragraph (3)(A). 
‘‘(3) ESTABLISHMENTS
THAT
EMPLOY
MORE
THAN
EMPLOYEES.—
H. R. 6124—479 
‘‘(A) DEVELOPMENT
OF
PROCEDURE.—The Secretary 
may develop a procedure to transition to a Federal 
establishment any establishment under this section that, 
on average, consistently employs more than 25 employees. 
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISHMENTS.— 
‘‘(i) IN
GENERAL.—A State establishment that 
employs more than 25 employees but less than 35 
employees as of the date of the enactment of this 
section may be selected as a selected establishment 
under this subsection. 
‘‘(ii) PROCEDURES.—A State establishment shall be 
subject to the procedures established under subpara-
graph (A) beginning on the date that is 3 years after 
the effective date described in subsection (i). 
‘‘(c) REIMBURSEMENT
OF STATE COSTS.—The Secretary shall 
reimburse a State for costs related to the inspection of selected 
establishments in the State in accordance with Federal require-
ments in an amount of not less than 60 percent of eligible State 
costs. 
‘‘(d) COORDINATION BETWEEN FEDERAL AND STATE AGENCIES.— 
‘‘(1) IN
GENERAL.—The Secretary shall designate an 
employee of the Federal Government as State coordinator for 
each appropriate State agency— 
‘‘(A) to provide oversight and enforcement of this sec-
tion; and 
‘‘(B) to oversee the training and inspection activities 
of designated personnel of the State agency. 
‘‘(2) SUPERVISION.—A State coordinator shall be under the 
direct supervision of the Secretary. 
‘‘(3) DUTIES OF STATE COORDINATOR.— 
‘‘(A) IN
GENERAL.—A State coordinator shall visit 
selected establishments with a frequency that is appro-
priate to ensure that selected establishments are operating 
in a manner that is consistent with this Act (including 
regulations and policies under this Act). 
‘‘(B) QUARTERLY REPORTS.—A State coordinator shall, 
on a quarterly basis, submit to the Secretary a report 
that describes the status of each selected establishment 
that is under the jurisdiction of the State coordinator with 
respect to the level of compliance of each selected establish-
ment with the requirements of this Act. 
‘‘(C) IMMEDIATE
NOTIFICATION
REQUIREMENT.—If a 
State coordinator determines that any selected establish-
ment that is under the jurisdiction of the State coordinator 
is in violation of any requirement of this Act, the State 
coordinator shall— 
‘‘(i) immediately notify the Secretary of the viola-
tion; and 
‘‘(ii) deselect the selected establishment or suspend 
inspection at the selected establishment. 
‘‘(4) PERFORMANCE
EVALUATIONS.—Performance evalua-
tions of State coordinators designated under this subsection 
shall be conducted by the Secretary as part of the Federal 
agency management control system. 
‘‘(e) AUDITS.— 
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPECTOR GENERAL 
OF THE DEPARTMENT OF AGRICULTURE.—Not later than 2 years
H. R. 6124—480 
after the effective date described in subsection (i), and not 
less often than every 3 years thereafter, the Inspector General 
of the Department of Agriculture shall conduct an audit of 
each activity taken by the Secretary under this section for 
the period covered by the audit to determine compliance with 
this section. 
‘‘(2) AUDIT CONDUCTED BY COMPTROLLER GENERAL OF THE 
UNITED STATES.—Not earlier than 3 years, nor later than 5 
years, after the date of the enactment of this section, the 
Comptroller General of the United States shall conduct an 
audit of the implementation of this section to determine— 
‘‘(A) the effectiveness of the implementation of this 
section; and 
‘‘(B) the number of selected establishments selected 
by the Secretary to ship poultry items under this section. 
‘‘(f) TRANSITION GRANTS.—The Secretary may provide grants 
to appropriate State agencies to assist the appropriate State agen-
cies in helping establishments covered by this Act to transition 
to selected establishments. 
‘‘(g) VIOLATIONS.—Any selected establishment that the Sec-
retary determines to be in violation of any requirement of this 
Act shall be transitioned to a Federal establishment in accordance 
with a procedure developed by the Secretary under subsection 
(b)(3)(A). 
‘‘(h) EFFECT.—Nothing in this section limits the jurisdiction 
of the Secretary with respect to the regulation of poultry and 
poultry products under this Act. 
‘‘(i) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—This section takes effect on the date 
on which the Secretary, after providing a period of public com-
ment (including through the conduct of public meetings or 
hearings), promulgates final regulations to carry out this sec-
tion. 
‘‘(2) REQUIREMENT.—Not later than 18 months after the 
date of the enactment of this section, the Secretary shall 
promulgate final regulations in accordance with paragraph (1).’’. 
SEC. 11016. INSPECTION AND GRADING. 
(a) GRADING.—Section 203 of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1622) is amended— 
(1) by redesignating subsection (n) as subsection (o); and 
(2) by inserting after subsection (m) the following new 
subsection: 
‘‘(n) GRADING PROGRAM.—To establish within the Department 
of Agriculture a voluntary fee based grading program for— 
‘‘(1) catfish (as defined by the Secretary under paragraph 
(2) of section 1(w) of the Federal Meat Inspection Act (21 
U.S.C. 601(w))); and 
‘‘(2) any additional species of farm-raised fish or farm- 
raised shellfish— 
‘‘(A) for which the Secretary receives a petition 
requesting such voluntary fee based grading; and 
‘‘(B) that the Secretary considers appropriate.’’. 
(b) INSPECTION.— 
(1) IN
GENERAL.—The Federal Meat Inspection Act is 
amended— 
(A) in section 1(w) (21 U.S.C. 601(w)) —
H. R. 6124—481 
(i) by striking ‘‘and’’ at the end of paragraph (1); 
(ii) by redesignating paragraph (2) as paragraph 
(3); and 
(iii) by inserting after paragraph (1) the following 
new paragraph: 
‘‘(2) catfish, as defined by the Secretary; and’’; 
(B) by striking section 6 (21 U.S.C. 606) and inserting 
the following new section: 
‘‘SEC. 6. (a) IN GENERAL.—For the purposes hereinbefore set 
forth the Secretary shall cause to be made, by inspectors appointed 
for that purpose, an examination and inspection of all meat food 
products prepared for commerce in any slaughtering, meat-canning, 
salting, packing, rendering, or similar establishment, and for the 
purposes of any examination and inspection and inspectors shall 
have access at all times, by day or night, whether the establishment 
be operated or not, to every part of said establishment; and said 
inspectors shall mark, stamp, tag, or label as ‘Inspected and passed’ 
all such products found to be not adulterated; and said inspectors 
shall label, mark, stamp, or tag as ‘Inspected and condemned’ 
all such products found adulterated, and all such condemned meat 
food products shall be destroyed for food purposes, as hereinbefore 
provided, and the Secretary may remove inspectors from any 
establishment which fails to so destroy such condemned meat food 
products: Provided, That subject to the rules and regulations of 
the Secretary the provisions of this section in regard to preserva-
tives shall not apply to meat food products for export to any foreign 
country and which are prepared or packed according to the specifica-
tions or directions of the foreign purchaser, when no substance 
is used in the preparation or packing thereof in conflict with the 
laws of the foreign country to which said article is to be exported; 
but if said article shall be in fact sold or offered for sale for 
domestic use or consumption then this proviso shall not exempt 
said article from the operation of all the other provisions of this 
chapter. 
‘‘(b) CATFISH.—In the case of an examination and inspection 
under subsection (a) of a meat food product derived from catfish, 
the Secretary shall take into account the conditions under which 
the catfish is raised and transported to a processing establishment.’’; 
and 
(C) by adding at the end of title I the following new 
section: 
‘‘SEC. 25. Notwithstanding any other provision of this Act, 
the requirements of sections 3, 4, 5, 10(b), and 23 shall not apply 
to catfish.’’. 
(2) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendments made by paragraph 
(1) shall not apply until the date on which the Secretary 
of Agriculture issues final regulations (after providing a 
period of public comment, including through the conduct 
of public meetings or hearings, in accordance with chapter 
5 of title 5, United States Code) to carry out such amend-
ments. 
(B) REGULATIONS.—Not later than 18 months after 
the date of the enactment of this Act, the Secretary of 
Agriculture, in consultation with the Commissioner of Food 
and Drugs, shall issue final regulations to carry out the 
amendments made by paragraph (1).
H. R. 6124—482 
(3) BUDGET REQUEST.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Agriculture 
shall submit to Congress an estimate of the costs of imple-
menting the amendments made by paragraph (1), including 
the estimated— 
(A) staff years; 
(B) number of establishments; 
(C) volume expected to be produced at such establish-
ments; and 
(D) any other information used in estimating the costs 
of implementing such amendments. 
SEC. 11017. FOOD SAFETY IMPROVEMENT. 
(a) FEDERAL MEAT INSPECTION ACT.—Title I of the Federal 
Meat Inspection Act is further amended by inserting after section 
11 (21 U.S.C. 611) the following: 
‘‘SEC. 12. NOTIFICATION. 
‘‘Any establishment subject to inspection under this Act that 
believes, or has reason to believe, that an adulterated or misbranded 
meat or meat food product received by or originating from the 
establishment has entered into commerce shall promptly notify 
the Secretary with regard to the type, amount, origin, and destina-
tion of the meat or meat food product. 
‘‘SEC. 13. PLANS AND REASSESSMENTS. 
‘‘The Secretary shall require that each establishment subject 
to inspection under this Act shall, at a minimum— 
‘‘(1) prepare and maintain current procedures for the recall 
of all meat or meat food products produced and shipped by 
the establishment; 
‘‘(2) document each reassessment of the process control 
plans of the establishment; and 
‘‘(3) upon request, make the procedures and reassessed 
process control plans available to inspectors appointed by the 
Secretary for review and copying.’’. 
(b) POULTRY PRODUCTS INSPECTION ACT.—Section 10 of the 
Poultry Products Inspection Act (21 U.S.C. 459) is amended— 
(1) by striking the section heading and all that follows 
through ‘‘SEC. 10. No establishment’’ and inserting the following: 
‘‘SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS. 
‘‘(a) IN GENERAL.—No establishment’’; and 
(2) by adding at the end the following: 
‘‘(b) NOTIFICATION.—Any establishment subject to inspection 
under this Act that believes, or has reason to believe, that an 
adulterated or misbranded poultry or poultry product received by 
or originating from the establishment has entered into commerce 
shall promptly notify the Secretary with regard to the type, amount, 
origin, and destination of the poultry or poultry product. 
‘‘(c) PLANS AND REASSESSMENTS.—The Secretary shall require 
that each establishment subject to inspection under this Act shall, 
at a minimum— 
‘‘(1) prepare and maintain current procedures for the recall 
of all poultry or poultry products produced and shipped by 
the establishment; 
‘‘(2) document each reassessment of the process control 
plans of the establishment; and
H. R. 6124—483 
‘‘(3) upon request, make the procedures and reassessed 
process control plans available to inspectors appointed by the 
Secretary for review and copying.’’. 
TITLE XII—CROP INSURANCE AND 
DISASTER ASSISTANCE PROGRAMS 
Subtitle A—Crop Insurance and 
Agricultural Disaster Assistance 
SEC. 12001. DEFINITION OF ORGANIC CROP. 
Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 
1502(b)) is amended— 
(1) by redesignating paragraphs (7) and (8) as paragraphs 
(8) and (9), respectively; and 
(2) by inserting after paragraph (6) the following: 
‘‘(7) ORGANIC
CROP.—The term ‘organic crop’ means an 
agricultural commodity that is organically produced consistent 
with section 2103 of the Organic Foods Production Act of 1990 
(7 U.S.C. 6502).’’. 
SEC. 12002. GENERAL POWERS. 
(a) IN GENERAL.—Section 506 of the Federal Crop Insurance 
Act (7 U.S.C. 1506) is amended— 
(1) in the first sentence of subsection (d), by striking ‘‘The 
Corporation’’ and inserting ‘‘Subject to section 508(j)(2)(A), the 
Corporation’’; and 
(2) by striking subsection (n). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C. 
1506) is amended by redesignating subsections (o), (p), and 
(q) as subsections (n), (o), and (p), respectively. 
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C. 
1521) is amended by striking the last sentence. 
SEC. 12003. REDUCTION IN LOSS RATIO. 
(a) PROJECTED LOSS RATIO.—Subsection (n)(2) of section 506 
of the Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated 
by section 12002(b)(1)) is amended— 
(1) in the paragraph heading, by striking ‘‘AS OF OCTOBER 
1, 1998’’; 
(2) by striking ‘‘, on and after October 1, 1998,’’; and 
(3) by striking ‘‘1.075’’ and inserting ‘‘1.0’’. 
(b) PREMIUMS REQUIRED.—Section 508(d)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ‘‘not 
greater than 1.1’’ and all that follows and inserting ‘‘not greater 
than— 
‘‘(A) 1.1 through September 30, 1998; 
‘‘(B) 1.075 for the period beginning October 1, 1998, 
and ending on the day before the date of enactment of 
the Food, Conservation, and Energy Act of 2008; and 
‘‘(C) 1.0 on and after the date of enactment of that 
Act.’’.
H. R. 6124—484 
SEC. 12004. PREMIUMS ADJUSTMENTS. 
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) is amended by adding at the end the following: 
‘‘(9) PREMIUM ADJUSTMENTS.— 
‘‘(A) PROHIBITION.—Except as provided in subpara-
graph (B), no person shall pay, allow, or give, or offer 
to pay, allow, or give, directly or indirectly, either as an 
inducement to procure insurance or after insurance has 
been procured, any rebate, discount, abatement, credit, or 
reduction of the premium named in an insurance policy 
or any other valuable consideration or inducement not 
specified in the policy. 
‘‘(B) EXCEPTIONS.—Subparagraph (A) does not apply 
with respect to— 
‘‘(i) a payment authorized under subsection 
(b)(5)(B); 
‘‘(ii) a performance-based discount authorized 
under subsection (d)(3); or 
‘‘(iii) a patronage dividend, or similar payment, 
that is paid— 
‘‘(I) by an entity that was approved by the 
Corporation to make such payments for the 2005, 
2006, or 2007 reinsurance year, in accordance with 
subsection (b)(5)(B) as in effect on the day before 
the date of enactment of this paragraph; and 
‘‘(II) in a manner consistent with the payment 
plan approved in accordance with that subsection 
for the entity by the Corporation for the applicable 
reinsurance year.’’. 
SEC. 12005. CONTROLLED BUSINESS INSURANCE. 
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)) (as amended by section 12004) is amended by adding 
at the end the following: 
‘‘(10) COMMISSIONS.— 
‘‘(A) DEFINITION OF IMMEDIATE FAMILY.—In this para-
graph, the term ‘immediate family’ means an individual’s 
father, mother, stepfather, stepmother, brother, sister, step-
brother, stepsister, son, daughter, stepson, stepdaughter, 
grandparent, 
grandson, 
granddaughter, 
father-in-law, 
mother-in-law, brother-in-law, sister-in-law, son-in-law, 
daughter-in-law, the spouse of the foregoing, and the 
individual’s spouse. 
‘‘(B) 
PROHIBITION.—No 
individual 
(including 
a 
subagent) may receive directly, or indirectly through an 
entity, any compensation (including any commission, profit 
sharing, bonus, or any other direct or indirect benefit) 
for the sale or service of a policy or plan of insurance 
offered under this title if— 
‘‘(i) the individual has a substantial beneficial 
interest, or a member of the individual’s immediate 
family has a substantial beneficial interest, in the 
policy or plan of insurance; and 
‘‘(ii) the total compensation to be paid to the indi-
vidual with respect to the sale or service of the policies 
or plans of insurance that meet the condition described
H. R. 6124—485 
in clause (i) exceeds 30 percent or the percentage speci-
fied in State law, whichever is less, of the total of 
all compensation received directly or indirectly by the 
individual for the sale or service of all policies and 
plans of insurance offered under this title for the 
reinsurance year. 
‘‘(C) REPORTING.—Not later than 90 days after the 
annual settlement date of the reinsurance year, any indi-
vidual that received directly or indirectly any compensation 
for the service or sale of any policy or plan of insurance 
offered under this title in the prior reinsurance year shall 
certify to applicable approved insurance providers that the 
compensation that the individual received was in compli-
ance with this paragraph. 
‘‘(D) SANCTIONS.—The procedural requirements and 
sanctions prescribed in section 515(h) shall apply to the 
prosecution of a violation of this paragraph. 
‘‘(E) APPLICABILITY.— 
‘‘(i) IN GENERAL.—Sanctions for violations under 
this paragraph shall only apply to the individuals or 
entities directly responsible for the certification 
required under subparagraph (C) or the failure to 
comply with the requirements of this paragraph. 
‘‘(ii) PROHIBITION.—No sanctions shall apply with 
respect to the policy or plans of insurance upon which 
compensation is received, including the reinsurance 
for those policies or plans.’’. 
SEC. 12006. ADMINISTRATIVE FEE. 
(a) IN GENERAL.—Section 508(b)(5) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(b)(5)) is amended— 
(1) by striking subparagraph (A) and inserting the fol-
lowing: 
‘‘(A) BASIC FEE.—Each producer shall pay an adminis-
trative fee for catastrophic risk protection in the amount 
of $300 per crop per county.’’; and 
(2) in subparagraph (B)— 
(A) by striking ‘‘PAYMENT ON BEHALF OF PRODUCERS’’ 
and inserting ‘‘PAYMENT OF CATASTROPHIC RISK PROTEC-
TION FEE ON BEHALF OF PRODUCERS’’; 
(B) in clause (i)— 
(i) by striking ‘‘or other payment’’; and 
(ii) by striking ‘‘with catastrophic risk protection 
or additional coverage’’ and inserting ‘‘through the pay-
ment of catastrophic risk protection administrative 
fees’’; 
(C) by striking clauses (ii) and (vi); 
(D) by redesignating clauses (iii), (iv), and (v) as clauses 
(ii), (iii), and (iv), respectively; 
(E) in clause (iii) (as so redesignated), by striking ‘‘A 
policy or plan of insurance’’ and inserting ‘‘Catastrophic 
risk protection coverage’’; and 
(F) in clause (iv) (as so redesignated)— 
(i) by striking ‘‘or other arrangement under this 
subparagraph’’; and 
(ii) by striking ‘‘additional’’.
H. R. 6124—486 
(b) REPEAL.—Section 748 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related Agencies Appro-
priations Act, 1999 (7 U.S.C. 1508 note; Public Law 105–277) is 
repealed. 
SEC. 12007. TIME FOR PAYMENT. 
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) 
is amended— 
(1) in subsection (b)(5)(C), by striking ‘‘the date that pre-
mium’’ and inserting ‘‘the same date on which the premium’’; 
(2) in subsection (c)(10), by adding at the end the following: 
‘‘(C) TIME
FOR
PAYMENT.—Subsection (b)(5)(C) shall 
apply with respect to the collection date for the administra-
tive fee.’’; and 
(3) in subsection (d), by adding at the end the following: 
‘‘(4) BILLING DATE FOR PREMIUMS.—Effective beginning with 
the 2012 reinsurance year, the Corporation shall establish 
August 15 as the billing date for premiums.’’. 
SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE. 
Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 
1508(b)(11)) is amended by striking ‘‘8 percent’’ and inserting ‘‘6 
percent’’. 
SEC. 12009. GRAIN SORGHUM PRICE ELECTION. 
Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)(5)) is amended by adding at the end the following: 
‘‘(D) GRAIN SORGHUM PRICE ELECTION.— 
‘‘(i) IN GENERAL.—The Corporation, in conjunction 
with the Secretary (referred to in this subparagraph 
as the ‘Corporation’), shall— 
‘‘(I) not later than 60 days after the date of 
enactment of this subparagraph, make available 
all methods and data, including data from the 
Economic Research Service, used by the Corpora-
tion to develop the expected market prices for grain 
sorghum under the production and revenue-based 
plans of insurance of the Corporation; and 
‘‘(II) request applicable data from the grain 
sorghum industry. 
‘‘(ii) EXPERT REVIEWERS.— 
‘‘(I) IN
GENERAL.—Not later than 120 days 
after the date of enactment of this subparagraph, 
the Corporation shall contract individually with 
5 expert reviewers described in subclause (II) to 
develop and recommend a methodology for deter-
mining an expected market price for sorghum for 
both the production and revenue-based plans of 
insurance to more accurately reflect the actual 
price at harvest. 
‘‘(II) REQUIREMENTS.—The expert reviewers 
under subclause (I) shall be comprised of agricul-
tural economists with experience in grain sorghum 
and corn markets, of whom— 
‘‘(aa) 2 shall be agricultural economists 
of institutions of higher education; 
‘‘(bb) 2 shall be economists from within 
the Department; and
H. R. 6124—487 
‘‘(cc) 1 shall be an economist nominated 
by the grain sorghum industry. 
‘‘(iii) RECOMMENDATIONS.— 
‘‘(I) IN GENERAL.—Not later than 90 days after 
the date of contracting with the expert reviewers 
under clause (ii), the expert reviewers shall 
submit, and the Corporation shall make available 
to the public, the recommendations of the expert 
reviewers. 
‘‘(II) CONSIDERATION.—The Corporation shall 
consider the recommendations under subclause (I) 
when determining the appropriate pricing method-
ology to determine the expected market price for 
grain sorghum under both the production and rev-
enue-based plans of insurance. 
‘‘(III) PUBLICATION.—Not later than 60 days 
after the date on which the Corporation receives 
the recommendations of the expert reviewers, the 
Corporation shall publish the proposed pricing 
methodology for both the production and revenue- 
based plans of insurance for notice and comment 
and, during the comment period, conduct at least 
1 public meeting to discuss the proposed pricing 
methodologies. 
‘‘(iv) APPROPRIATE PRICING METHODOLOGY.— 
‘‘(I) IN
GENERAL.—Not later than 180 days 
after the close of the comment period in clause 
(iii)(III), but effective not later than the 2010 crop 
year, the Corporation shall implement a pricing 
methodology for grain sorghum under the produc-
tion and revenue-based plans of insurance that 
is transparent and replicable. 
‘‘(II) INTERIM METHODOLOGY.—Until the date 
on which the new pricing methodology is imple-
mented, the Corporation may continue to use the 
pricing methodology that the Corporation deter-
mines best establishes the expected market price. 
‘‘(III) AVAILABILITY.—On an annual basis, the 
Corporation shall make available the pricing meth-
odology and data used to determine the expected 
market prices for grain sorghum under the produc-
tion and revenue-based plans of insurance, 
including any changes to the methodology used 
to determine the expected market prices for grain 
sorghum from the previous year.’’. 
SEC. 12010. PREMIUM REDUCTION AUTHORITY. 
Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)) is amended— 
(1) in paragraph (2), by striking ‘‘paragraph (4)’’ and 
inserting ‘‘paragraph (3)’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively.
H. R. 6124—488 
SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS. 
Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
(as amended by section 12010) is amended by adding at the end 
the following: 
‘‘(5) ENTERPRISE AND WHOLE FARM UNITS.— 
‘‘(A) IN GENERAL.—The Corporation may carry out a 
pilot program under which the Corporation pays a portion 
of the premiums for plans or policies of insurance for which 
the insurable unit is defined on a whole farm or enterprise 
unit basis that is higher than would otherwise be paid 
in accordance with paragraph (2). 
‘‘(B) AMOUNT.—The percentage of the premium paid 
by the Corporation to a policyholder for a policy with an 
enterprise or whole farm unit under this paragraph shall, 
to the maximum extent practicable, provide the same dollar 
amount of premium subsidy per acre that would otherwise 
have been paid by the Corporation under paragraph (2) 
if the policyholder had purchased a basic or optional unit 
for the crop for the crop year. 
‘‘(C) LIMITATION.—The amount of the premium paid 
by the Corporation under this paragraph may not exceed 
80 percent of the total premium for the enterprise or whole 
farm unit policy.’’. 
SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE 
PLANS. 
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)) (as amended by section 12011) is amended— 
(1) in paragraph (2), in the matter preceding subparagraph 
(A), by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4), 
(6), and (7)’’; and 
(2) by adding at the end the following: 
‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE PLANS.—Subject 
to paragraph (4), in the case of a policy or plan of insurance 
that covers losses due to a reduction in revenue in an area, 
the amount of the premium paid by the Corporation shall 
be as follows: 
‘‘(A) In the case of additional area coverage equal to 
or greater than 70 percent, but less than 75 percent, of 
the recorded county yield indemnified at not greater than 
100 percent of the expected market price, the amount shall 
be equal to the sum of— 
‘‘(i) 59 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and 
‘‘(ii) the amount determined under subsection 
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative expenses. 
‘‘(B) In the case of additional area coverage equal to 
or greater than 75 percent, but less than 85 percent, of 
the recorded county yield indemnified at not greater than 
100 percent of the expected market price, the amount shall 
be equal to the sum of— 
‘‘(i) 55 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage 
level selected; and