‘‘SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES. 
‘‘(a) HIGH LEVEL OF PERFORMANCE BONUS.—For 
each of fiscal years 2008 through 2013, 10 percent of the 
funds made available under this chapter shall be reserved 
by the Secretary for bonus allocations to States that dem-
onstrate a high level of performance in implementing the 
environmental quality incentives program. 
‘‘(b) SPECIAL
CONSIDERATIONS.—In evaluating 
State performance under subsection (a), the Secretary 
shall reward States that— 
‘‘(1) consistently meet the requirements of sec-
tion 1240C in evaluating offers and payments; 
‘‘(2) dedicate a portion of their annual environ-
mental quality incentives program allocation to 
multi-producer cooperative efforts to address specific 
resource concerns; 
‘‘(3) collaborate with other Federal and State 
agencies, local governments, educational institutions, 
and for-profit and nonprofit organizations to mon-
itor and evaluate the environmental outcomes associ-
ated with implementation of the environmental qual-
ity incentives program; 
‘‘(4) demonstrate effective and efficient pro-
gram delivery, including the provision of adequate 
technical assistance to all program participants 
through appropriate staffing and through coopera-
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tion with other Federal, State, Tribal, and local 
agencies, for-profit and nonprofit organizations, and 
individuals with demonstrated expertise in the plan-
ning and implementation of conservation practices, 
systems, and approaches; 
‘‘(5) support and encourage innovative ap-
proaches to addressing resource concerns; 
‘‘(6) effectively leverage Federal funding with 
local and State matching funds; and 
‘‘(7) demonstrate effective outreach and innova-
tive approaches to reaching and serving beginning 
farmers and ranchers, limited-resource producers, 
and operators with lower rates of historical partici-
pation in Federal farm and conservation programs.’’. 
SEC. 202. DELIVERY OF TECHNICAL ASSISTANCE. 
(a) Subsection (a)(2) of section 1242 of the Food Se-
curity Act of 1985 (16 U.S.C. 3842) is amended to read 
as follows: 
‘‘(2) at the option of the producer, through a 
payment, as determined by the Secretary, to an ap-
proved third party or technical service provider, if 
available.’’. 
(b) Subsection (b)(1)(B) of section 1242 of the Food 
Security Act of 1985 (16 U.S.C. 3842) is amended to read 
as follows: 
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‘‘(B) establishing the amounts and meth-
ods for payments for that assistance, provided 
that payment rates reflect reasonable market 
conditions for the region in which the assistance 
would be provided.’’. 
(c) Subsection (b)(3) of section 1242 of the Food Se-
curity Act of 1985 (16 U.S.C. 3842) is amended to read 
as follows: 
‘‘(3) COMPETITIVE
BIDDING.—The Secretary 
may accept bids from and enter into annual or 
multi-year contracts and agreements with approved 
third parties to provide technical assistance to pro-
ducers eligible for assistance under this title.’’. 
(d) Subsection (b)(4) of section 1242 of the Food Se-
curity Act of 1985 (16 U.S.C. 3842) is amended by strik-
ing ‘‘Secretary may request’’ and inserting ‘‘Secretary 
shall, to the maximum extent practicable, request’’. 
(e) Subsection (b)(1) of section 1241 of the Food Se-
curity Act of 1985 (16 U.S.C. 3841) is amended to read 
as follows: 
‘‘(1) shall be available for the provision of tech-
nical assistance for the programs for which funds 
are made available beginning with the time that the 
producer submits a bona fide application for assist-
ance under that program; and’’. 
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SEC. 203. COOPERATIVE CONSERVATION PARTNERSHIP 
INITIATIVE. 
(a) ESTABLISHMENT OF GRANT PROGRAM.—Subtitle 
D of title XII of the Food Security Act of 1985 is amend-
ed by adding at the end the following new chapter: 
‘‘CHAPTER 6—COOPERATIVE CONSERVA-
TION PARTNERSHIP INITIATIVE 
‘‘SEC. 1240W. COOPERATIVE CONSERVATION PARTNERSHIP 
INITIATIVE. 
‘‘(a) GRANTS
AND AGREEMENTS.—The Secretary 
shall make grants and enter into agreements for not short-
er than 2-year or longer than 5-year terms with eligible 
entities specified in subsection (c) to preferentially enroll 
producers in 1 or more of the programs specified in sub-
section (b) to carry out special projects and initiatives 
through which multiple producers and other interested 
persons cooperate to address specific resources of concern 
related to agricultural production on a local, State, or re-
gional scale. 
‘‘(b) COVERED PROGRAMS.—The conservation pro-
grams referred to in subsection (a) are the following: 
‘‘(1) Conservation reserve program, but only 
the continuous signup portion of the program. 
‘‘(2) Conservation reserve enhancement pro-
gram. 
‘‘(3) Environmental quality incentives program. 
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‘‘(4) Farmland protection program. 
‘‘(5) Grassland reserve program. 
‘‘(6) Ground and surface water conservation 
program. 
‘‘(7) Wetland reserve program. 
‘‘(8) Wildlife habitat incentive program. 
‘‘(c) ELIGIBLE PARTNERS.—Grants may be made or 
agreements may be entered into under this section with 
any of the following (or a combination thereof): 
‘‘(1) States and agencies of States. 
‘‘(2) Political subdivisions of States, including 
State-sponsored conservation districts. 
‘‘(3) Indian tribes. 
‘‘(4) Nongovernmental organizations and asso-
ciations, including producer associations, farmer co-
operatives, extension associations, and conservation 
organizations with a history of working cooperatively 
with producers to effectively address resource con-
cerns related to agricultural production, as deter-
mined by the Secretary. 
‘‘(d) APPLICATIONS.— 
‘‘(1) COMPETITIVE
PROCESS.—The Secretary 
shall establish a competitive process for considering 
applications for grants or agreements under this sec-
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tion consistent with the evaluation criteria listed in 
subsection (e). 
‘‘(2) 
PROGRAM
ALLOCATION.—Applications 
shall include— 
‘‘(A) specification of the amount of fund-
ing or acres, or both, of 1 or more covered pro-
grams specified in subsection (b) proposed to be 
allocated to carry out the special project or ini-
tiative; and 
‘‘(B) a schedule for utilization of funding 
or acres over the life of the proposed project or 
initiative. 
‘‘(e) EVALUATION CRITERIA.—In evaluating applica-
tions for grants or agreements under this section the Sec-
retary shall consider the extent to which— 
‘‘(1) preferential enrollment in the covered pro-
grams specified in the application will effectively ad-
dress the environmental objectives established for 
the special project or initiative; and 
‘‘(2) the special project or initiative covered by 
the application— 
‘‘(A) enjoys local and regional support 
from producers and other interested persons, 
including governmental and nongovernmental 
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organizations with appropriate expertise on the 
issues the project or initiative seeks to address; 
‘‘(B) includes clear environmental objec-
tives and a high likelihood of success; 
‘‘(C) includes a well defined project or ini-
tiative plan that identifies sensitive areas re-
quiring treatment and prioritizes conservation 
systems, practices, and activities needed to 
achieve environmental objectives; 
‘‘(D) promises adequate and coordinated 
participation to achieve the objectives of the 
project or initiative; 
‘‘(E) coordinates integration of local, 
State, and Federal efforts to make the best use 
of available resources and maximize cost-effec-
tive investments; 
‘‘(F) leverages financial and technical re-
sources from sources other than the programs 
authorized by this subtitle, including financial 
and technical resources provided by Federal 
and State agencies, local governments, non-
governmental organizations and associations, 
and other private sector entities; 
‘‘(G) describes how all necessary technical 
assistance will be provided to each producer 
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participating in the project or initiative, includ-
ing cost estimates for technical assistance and 
whether such assistance will be provided by 
technical service providers; 
‘‘(H) describes how the administrative 
costs of the project or initiative will be mini-
mized; 
‘‘(I) addresses a local, State, regional, or 
national environmental priority or priorities, 
with particular emphasis on any priority for 
which there is an existing State or federally ap-
proved plan in place for addressing that pri-
ority; 
‘‘(J) includes a plan to evaluate progress 
and measure results; and 
‘‘(K) clearly demonstrates that enrollment 
of producers in covered programs will be con-
sistent with the purposes and policies of each 
individual program, as established in statute, 
rules and regulations, and program guidance 
promulgated by implementing agencies. 
‘‘(f) PRIORITIES.—To the maximum extent prac-
ticable, consistent with the requirements of subsection (d), 
the Secretary shall ensure that, each fiscal year, grants 
are awarded and agreements are entered into under this 
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section to support projects and initiatives that collectively 
address the resource concerns facing producers, ranchers, 
and small private forest landowners, including specifically 
projects and initiatives that are designed— 
‘‘(1) to achieve improvements in water quality 
in watersheds impacted by agriculture, particularly 
by increasing the participation of producers in im-
plementing best management practices in a water-
shed or developing environmentally and economically 
viable alternative uses for manure and litter; 
‘‘(2) to achieve improvements in air quality in 
a geographical area where agricultural operations 
impact air quality, especially an area that, as deter-
mined by the Administrator of the Environmental 
Protection Agency, is a non-attainment area with re-
spect to any of the national ambient air quality 
standards promulgated by the Administrator under 
section 109 of the Clean Air Act (42 U.S.C. 7409); 
‘‘(3) to conserve water for environmental pur-
poses, such as enhanced in stream flows or aquifer 
recharge in regions, States, or local areas where 
water quantity is a concern; 
‘‘(4) to assist in the recovery of Federal or 
State-listed endangered species or species of special 
concern or to further the goals and objectives of a 
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State’s comprehensive wildlife conservation plan 
through the cooperative efforts of multiple pro-
ducers; 
‘‘(5) to control invasive species on rangeland or 
other agricultural land through the cooperative ef-
forts of multiple producers in a geographical area; 
‘‘(6) to address a specific resource of concern or 
set of concerns on private, non-industrial forest land; 
‘‘(7) to reduce losses of pesticides to the envi-
ronment by engaging multiple producers in a geo-
graphic area in adoption of integrated pest manage-
ment practices and approaches; and 
‘‘(8) to keep working farms and ranches facing 
development pressures in agricultural use. 
‘‘(g) COST SHARE.— 
‘‘(1) MAXIMUM; EXCEPTIONS.—The Secretary 
shall not require more than 25 percent of the cost 
of a project or initiative supported under a grant or 
agreement entered into under this section to come 
from non-Federal sources. However, the Secretary 
may award more points to projects or initiatives of-
fering to cover a higher percentage of the cost of the 
project or initiative from non-Federal sources. 
‘‘(2) IN-KIND
CONTRIBUTIONS.—If the Sec-
retary establishes a cost-share requirement for a 
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project or initiative, the Secretary shall allow the use 
of in-kind contributions to meet that requirement. 
‘‘(h) FUNDING.— 
‘‘(1) SET-ASIDE.—Of the funds provided each 
fiscal year to implement the programs specified in 
subsection (b), the Secretary shall reserve the fol-
lowing percentages to ensure an adequate source of 
funds for grants and agreements entered into under 
this section: 
‘‘(A) 5 percent for fiscal year 2008; 
‘‘(B) 10 percent for fiscal year 2009; 
‘‘(C) 15 percent for fiscal year 2010; and 
‘‘(D) 20 percent for each of fiscal years 
2011 through 2013. 
‘‘(2) ALLOCATION TO STATES.—The Secretary 
shall allocate to States 75 percent of the funds re-
served under paragraph (1) for a fiscal year to allow 
State Conservationists, with the advice of State tech-
nical committees, to select projects and initiatives 
for funding under this section at the State level. The 
allocation shall be made on a similar basis as what 
would have been the case under the covered pro-
grams identified in subsection (b).’’. 
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(b) CONFORMING REPEAL.—Section 1243 of the 
Food Security Act of 1985 (16 U.S.C. 3843) is amended 
by striking subsection (f). 
SEC. 204. CONSERVATION LOAN GUARANTEE PROGRAM. 
Subtitle A of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1921–1936a) is amended by in-
serting after section 304 the following: 
‘‘SEC. 304A. CONSERVATION LOAN GUARANTEE PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may provide a 
loan guarantee, an interest subsidy, or both, to enable an 
eligible borrower to obtain a qualified conservation loan. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE BORROWER.—The term ‘eligible 
borrower’ means a farmer, rancher, farm coopera-
tive, private domestic corporation, partnership, joint 
operation, trust, or limited liability company, that is 
engaged primarily and directly in agricultural pro-
duction in the United States. 
‘‘(2) QUALIFIED
CONSERVATION
LOAN.—The 
term ‘qualified conservation loan’ means a loan that 
meets the following requirements: 
‘‘(A) PURPOSE.—The loan proceeds are re-
quired to be used to cover the costs to the bor-
rower of carrying out a qualified conservation 
project. 
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‘‘(B) PRINCIPAL AMOUNT.—The principal 
amount of the loan is not more than 
$1,000,000. 
‘‘(C) REPAYMENT PERIOD.—The loan re-
payment period shall not exceed 10 years. 
‘‘(D) NO REPAYMENT REQUIRED IN FIRST 
YEAR.—The lender is prohibited from requiring 
any part of the loan to be repaid in the 1-year 
period that begins with the date of the closing 
of the loan. 
‘‘(E) NO LOAN FORGIVENESS.—The lender 
is prohibited from forgiving any part of the 
loan. 
‘‘(F) LIMITED
PROCESSING
FEE.—The 
total of all processing fees charged with respect 
to the loan does not exceed such amount as 
shall be prescribed by the Secretary. 
‘‘(3) QUALIFIED
CONSERVATION
PROJECT.— 
The term ‘qualified conservation project’ means, 
with respect to an eligible borrower, conservation 
measures included in a conservation plan for a farm-
ing or ranching operation of the borrower, includ-
ing— 
‘‘(A) the installation of conservation struc-
tures, including terraces, sod waterways, per-
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manently vegetated stream borders and filter 
strips, windbreaks (tree or grass), shelter belts, 
and living snow fences, if all plantings consist 
of vegetation appropriate to the locale; 
‘‘(B) the establishment of forest cover for 
sustained yield timber management, erosion 
control, or shelter belt purposes, if the forest 
cover is appropriate to the locale; 
‘‘(C) the installation of water conservation 
measures; 
‘‘(D) the installation of waste management 
systems; 
‘‘(E) the establishment or improvement of 
permanent pasture; 
‘‘(F) the payment of costs of complying 
with section 1212 of the Food Security Act of 
1985; 
‘‘(G) other purposes consistent with the 
conservation plan; 
‘‘(H) any conservation project or practice, 
as described by technical guides and handbooks 
issues by the Natural Resources Conservation 
Service; or 
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‘‘(I) emerging conservation practices, tech-
niques, or technologies, as approved by the Sec-
retary. 
‘‘(c) LIMITATIONS APPLICABLE TO LOAN GUARAN-
TEES.— 
‘‘(1) LIMITATION
ON
AMOUNT
OF
GUAR-
ANTEE.—The portion of a loan that the Secretary 
may guarantee under this section shall be not less 
than 80 percent and not more than 90 percent of 
the principal amount of the loan. 
‘‘(2) LIMITATION
ON
TOTAL
AMOUNT
OUT-
STANDING.—The aggregate principal amount of out-
standing loans guaranteed by the Secretary under 
this section shall not exceed $1,000,000,000. 
‘‘(d) LIMITATION ON AMOUNT OF INTEREST SUB-
SIDY.—The interest subsidy which the Secretary may pro-
vide under this section with respect to a loan shall result 
in a reduction of the interest rate agreed upon by the bor-
rower and the lender (but to not less than zero) by— 
‘‘(1) 500 basis points, if the principal amount 
of the loan is less than $100,000; 
‘‘(2) 400 basis points, if the principal amount 
of the loan is not less than $100,000 and is less 
than $500,000; and 
‘‘(3) 300 basis points, in any other case. 
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‘‘(e) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) AUTHORITY
TO
COLLECT
PROCESSING 
FEE.—The Secretary may assess a fee to cover the 
cost of processing an application under this section 
equal to not more than 1 percent of the principal 
amount of the loan sought by the applicant, as de-
scribed in the application. 
‘‘(2) PROVISION
OF
FINANCIAL
INFORMA-
TION.—An applicant for a loan guarantee or interest 
subsidy under this section shall provide the Sec-
retary with such financial information as may be re-
quired by the Secretary, in the manner generally re-
quired by commercial agricultural lenders in the geo-
graphical area where the farming or ranching oper-
ation of the applicant is located. 
‘‘(3) APPRAISAL.—The Secretary may require 
that an appraisal made in connection with an appli-
cation for a loan guarantee or interest subsidy under 
this section be conducted by a specialized appraiser 
that uses standards similar to the standards used 
for similar purposes in the private sector, as deter-
mined by the Secretary. 
‘‘(4) APPROVAL
OF
APPLICATION.—The Sec-
retary shall not approve an application submitted 
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pursuant to this section, unless the Natural Re-
sources Conservation Service has determined that— 
‘‘(A) the loan sought by the applicant, as 
described in the application, would be a quali-
fied conservation loan; and 
‘‘(B) the project for which the loan is 
sought is likely to result in a net benefit to the 
environment. 
‘‘(5) DEADLINE
FOR
DECISION
ON
APPLICA-
TION.—Within 45 business days after the receipt of 
an application for assistance under this section, the 
Secretary shall transmit to the applicant the decision 
of the Secretary to approve or disapprove the appli-
cation, to the extent practicable. 
‘‘(6) EQUITABLE
DISTRIBUTION
OF
LOAN 
GUARANTEES AND INTEREST SUBSIDIES.—The Sec-
retary shall ensure that loan guarantees and interest 
subsidies under this section are equitably distributed 
among agricultural producers according to the scale 
of the operations of the producers that submit appli-
cations in any year. 
‘‘(f) RELATIONSHIP WITH OTHER CONSERVATION 
PROGRAMS.—Neither the application for, nor the receipt 
of, a loan guarantee or an interest subsidy under this sec-
tion shall affect the eligibility of the recipient for assist-
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ance under title XII of the Food Security Act of 1985 
or the Watershed Protection and Flood Prevention Act. 
‘‘(g) APPROPRIATIONS.—For each of fiscal years 
2008 through 2013, the Secretary shall use such funds 
of the Commodity Credit Corporation as are necessary to 
carry out this section.’’. 
SEC. 205. PILOT PROGRAM FOR COMPREHENSIVE CON-
SERVATION PLANNING. 
Subtitle D of title XII of the Food Security Act of 
1985 is amended by adding at the end of chapter 5 the 
following new section: 
‘‘SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CON-
SERVATION PLANNING. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
pilot program to undertake comprehensive conservation 
planning to assist producers prior to making application 
for assistance under any of the conservation programs au-
thorized by this subtitle. 
‘‘(b) CONSERVATION PLANNING ASSISTANCE.—The 
Secretary shall undertake 4 pilot projects in the locations 
specified in paragraph (c) to assist producers by making 
a comprehensive assessment of the resource concerns, 
needs, and alternative solutions for the producer’s entire 
operation, as determined by the Secretary, following the 
procedures in the Natural Resources Conservation Service 
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conservation planning manual. The assistance to pro-
ducers shall be provided by the Secretary directly or 
through third party providers certified by the Secretary, 
and shall not be at the expense of the producer. The result 
of the comprehensive planning assistance shall be provided 
to the producer to enable informed choices on the type 
of financial assistance available through subtitle D con-
servation programs administered by the Secretary that 
would most effectively address the resource needs of the 
operation consistent with the environmental goals for the 
area in which the operation is located. 
‘‘(c) PILOT PROJECTS.—Pilot projects in comprehen-
sive conservation planning shall be undertaken in the fol-
lowing locations: 
‘‘(1) Chesapeake Bay watershed. 
‘‘(2) Great Lakes Basin. 
‘‘(3) Connecticut River Valley Watershed. 
‘‘(4) Highlands Region, as defined in section 3 
of Public Law 108–421. 
‘‘(d) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall provide $40 mil-
lion each of fiscal years 2008 through 2013 to carry out 
the pilot comprehensive conservation planning program 
authorized by this section. The funds shall be equitably 
divided, between each of the 4 pilot projects. 
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‘‘(e) REPORT.—The Secretary shall conduct an as-
sessment of the effectiveness of the comprehensive con-
servation planning pilot and publish a report, available to 
the public, of the results of the assessment. Such assess-
ments shall be undertaken in the second year and the fifth 
year of the pilot program.’’. 
SEC. 206. CONSERVATION APPLICATION PROCESS. 
Subtitle E of title XII of the Food Security Act of 
1985 (16 U.S.C. 3841 et seq.) is amended by adding at 
the end of section 1244 the following: 
‘‘(c) IN GENERAL.—In carrying out any of the con-
servation programs administered by the Natural Re-
sources Conservation Service, the Secretary shall establish 
a single, simplified application for eligible entities to use 
in initially requesting assistance. The Secretary shall in-
sure that conservation program participant need not be 
required to provide information duplicate to the informa-
tion and resources already available to the Secretary, for 
that applicant and for that specific operation, and that 
the application process imposed on conservation program 
participants be streamlined to minimize complexity and re-
dundancy. 
‘‘(1) REVIEW OF APPLICATION PROCESS.—The 
Secretary shall review the conservation application 
process and the forms and related mechanisms used 
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to receive assistance requests from eligible program 
participants. This review shall be to determine what 
information the participant is actually required to be 
submitted during the application process, includ-
ing— 
‘‘(A) identification information for the ap-
plicant; 
‘‘(B) identification and location informa-
tion for the land parcel or tract of concern; 
‘‘(C) a general statement of the applicant’s 
need for or resource concern on the land parcel 
or tract; and 
‘‘(D) the minimum amount of other infor-
mation the Secretary deems essential for the 
applicant himself or herself to provide. 
‘‘(2) REVISION
AND
STREAMLINE.—The Sec-
retary shall carry out a revision of the application 
forms and processes for conservation programs cov-
ered in this subsection to enable utilization of infor-
mation technology as an avenue to incorporate ap-
propriate data and information concerning the con-
servation needs and solutions appropriate for the 
land area identified by the applicant. The revision 
shall seek to streamline the application process to 
minimize the burden placed on the applicant. 
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‘‘(3) CONSERVATION PROGRAM APPLICATION.— 
At the time that the applicant’s needs are ade-
quately assessed by the Secretary, or through a third 
party provider under section 1242, in order to deter-
mine the programs covered under title XII that best 
matches the need of the applicant, with the approval 
of the applicant, the Secretary may convert the ini-
tial application into the specific application for as-
sistance for the program of choice. To the maximum 
extent practical, the specific application for con-
servation program assistance shall be carried out by 
the Secretary by requesting only that specific further 
information from the applicant that is not already 
available to the Secretary. 
‘‘(4) IMPLEMENTATION
AND
NOTIFICATION.— 
Not later than 12 months after the date of enact-
ment of this act, the Secretary shall complete the re-
quirements of this subsection and shall provide a 
written notification of such completion to the Com-
mittees on Agriculture of the House and Senate.’’. 
VerDate Aug 31 2005 
02:12 Jun 09, 2007
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