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HR 2419 PCS
(iv) provisions for periodic drought ex-
ercises, revisions, and updates; 
(v) a hydrologic characterization study 
to determine how water is being used dur-
ing times of normal water supply avail-
ability to anticipate the types of drought 
mitigation actions that would most effec-
tively improve water management during a 
drought; 
(vi) drought triggers; 
(vii) specific implementation actions 
for droughts; 
(viii) a water shortage allocation plan, 
consistent with State water law; and 
(ix) comprehensive insurance and fi-
nancial strategies to manage the risks and 
financial impacts of droughts; and 
(F) shall take into consideration— 
(i) the financial impact of the plan on 
the ability of the utilities to ensure rate 
stability and revenue stream; and 
(ii) economic impacts from water 
shortages. 
(k) AUTHORIZATION OF APPROPRIATIONS.— 
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HR 2419 PCS
(1) COUNCIL.—There is authorized to be appro-
priated to carry out the activities of the Council 
$2,000,000 for fiscal year 2008 and for each of the 
subsequent seven fiscal years. 
(2) FUND.—There are authorized to be appro-
priated to the Fund such sums as are necessary to 
carry out subsection (i). 
SEC. 11013. PAYMENT OF PORTION OF PREMIUM FOR AREA 
REVENUE PLANS. 
Section 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) 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 cov-
erage equal to or greater than 70 percent, but 
less than 75 percent, of the recorded county 
yield indemnified at not greater than 100 per-
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HR 2419 PCS
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 59 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses. 
‘‘(B) In the case of additional area cov-
erage equal to or greater than 75 percent, but 
less than 85 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 55 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses. 
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‘‘(C) In the case of additional area cov-
erage equal to or greater than 85 percent, but 
less than 90 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 49 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses. 
‘‘(D) In the case of additional area cov-
erage equal to or greater than 90 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) 44 percent of the amount of the 
premium 
established 
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 
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HR 2419 PCS
level selected to cover operating and ad-
ministrative expenses. 
‘‘(7) PREMIUM
SUBSIDY
FOR
AREA
YIELD 
PLANS.—Subject to paragraph (4), in the case of a 
policy or plan of insurance that covers losses due to 
a loss of yield or prevented planting in an area, the 
amount of the premium paid by the Corporation 
shall be as follows: 
‘‘(A) In the case of additional area cov-
erage equal to or greater than 70 percent, but 
less than 80 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 59 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses. 
‘‘(B) In the case of additional area cov-
erage equal to or greater than 80 percent, but 
less than 90 percent, of the recorded county 
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HR 2419 PCS
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 55 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses. 
‘‘(C) In the case of additional area cov-
erage equal to or greater than 90 percent, of 
the recorded county yield indemnified at not 
greater than 100 percent of the expected mar-
ket price, the amount shall be equal to the sum 
of— 
‘‘(i) 51 percent of the amount of the 
premium 
established 
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 operating and ad-
ministrative expenses.’’. 
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