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1998 (63 Fed. Reg. 28965) or a successor pro-
gram.’’.
(k) COUNTY PARTICIPATION.—Section 1243(b)(1) of
the Food Security Act of 1985 (16 U.S.C. 3843(b)(1)) is
amended by striking ‘‘The Secretary’’ and inserting ‘‘Ex-
cept for land enrolled under continuous signup (as described
in section 1231(b)(6)), the Secretary’’.
(l) STUDY ON ECONOMIC EFFECTS.—
(1) IN GENERAL.—Not later than 270 days after
the date of enactment of this Act, the Secretary of Ag-
riculture shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the economic and social
effects on rural communities resulting from the con-
servation reserve program established under sub-
chapter B of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
(2) COMPONENTS.—The study under paragraph
(1) shall include analyses of—
(A) the impact that enrollments in the con-
servation reserve program described in that
paragraph have on rural businesses, civic orga-
nizations, and community services (such as
schools, public safety, and infrastructure), par-
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ticularly in communities with a large percentage
of whole farm enrollments;
(B) the effect that those enrollments have on
rural population and beginning farmers (includ-
ing a description of any connection between the
rate of enrollment and the incidence of absentee
ownership); and
(C)(i) the manner in which differential per
acre payment rates potentially impact the types
of land (by productivity) enrolled;
(ii) changes to the per acre payment rates
that may affect that impact; and
(iii) the manner in which differential per
acre payment rates could facilitate retention of
productive agricultural land in agriculture.
SEC. 213. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.
(a) IN GENERAL.—Chapter 4 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.)
is amended to read as follows:
‘‘SEC. 1240. PURPOSES.
‘‘The purposes of the environmental quality incentives
program established by this chapter are to promote agricul-
tural production and environmental quality as compatible
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national goals, and to maximize environmental benefits per
dollar expended, by—
‘‘(1) assisting producers in complying with—
‘‘(A) this title;
‘‘(B) the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.);
‘‘(C) the Safe Drinking Water Act (42
U.S.C. 300f et seq.);
‘‘(D) the Clean Air Act (42 U.S.C. 7401 et
seq.); and
‘‘(E) other Federal, State, tribal, and local
environmental laws (including regulations);
‘‘(2) avoiding, to the maximum extent prac-
ticable, the need for resource and regulatory programs
by assisting producers in protecting soil, water, air,
and related natural resources and meeting environ-
mental quality criteria established by Federal, State,
tribal, and local agencies;
‘‘(3) providing flexible technical and financial
assistance to producers to install and maintain con-
servation systems that enhance soil, water, related
natural resources (including grazing land and wet-
land), and wildlife while sustaining production of
food and fiber;
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‘‘(4) assisting producers to make beneficial, cost
effective changes to cropping systems, grazing man-
agement, nutrient management associated with live-
stock, pest or irrigation management, or other prac-
tices on agricultural land;
‘‘(5) facilitating partnerships and joint efforts
among producers and governmental and nongovern-
mental organizations; and
‘‘(6) consolidating and streamlining conservation
planning and regulatory compliance processes to re-
duce administrative burdens on producers and the
cost of achieving environmental goals.
‘‘SEC. 1240A. DEFINITIONS.
‘‘In this chapter:
‘‘(1) BEGINNING
FARMER
OR
RANCHER.—The
term ‘beginning farmer or rancher’ has the meaning
provided under section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1999(a)).
‘‘(2) 
COMPREHENSIVE
NUTRIENT
MANAGE-
MENT.—
‘‘(A) IN GENERAL.—The term ‘comprehen-
sive nutrient management’ means any combina-
tion of structural practices, land management
practices, and management activities associated
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with crop or livestock production described in
subparagraph (B) that collectively ensure that
the purposes of crop or livestock production and
preservation of natural resources (especially the
preservation and enhancement of water quality)
are compatible.
‘‘(B) ELEMENTS.—For the purpose of sub-
paragraph (A), structural practices, land man-
agement practices, and management activities
associated with livestock production are—
‘‘(i) manure and wastewater handling
and storage;
‘‘(ii) manure processing, composting,
or digestion for purposes of capturing emis-
sions, concentrating nutrients for transport,
destroying pathogens or otherwise improv-
ing the environmental safety and beneficial
uses of manure;
‘‘(iii) land treatment practices;
‘‘(iv) nutrient management;
‘‘(v) recordkeeping;
‘‘(vi) feed management; and
‘‘(vii) other waste utilization options.
‘‘(C) PRACTICE.—
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‘‘(i) PLANNING.—The development of a
comprehensive nutrient management plan
shall be a practice that is eligible for incen-
tive payments and technical assistance
under this chapter.
‘‘(ii) IMPLEMENTATION.—The imple-
mentation of a comprehensive nutrient plan
shall be accomplished through structural
and land management practices identified
in the plan.
‘‘(iii) REQUIREMENT.—A comprehen-
sive nutrient management plan shall meet
all Federal, State, and local water quality
and public health goals and regulations,
and in the case of a large confined livestock
operation (as defined by the Secretary),
shall include all necessary and essential
land treatment practices as determined by
the Secretary.
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’
means agriculture land (including cropland, grass-
land, rangeland, pasture, private nonindustrial forest
land and other land on which crops or livestock are
produced), including agricultural land that the Sec-
retary determines poses a serious threat to soil, water,
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or related resources by reason of the soil types, ter-
rain, climatic, soil, topographic, flood, or saline char-
acteristics, or other factors or natural hazards.
‘‘(4) INNOVATIVE TECHNOLOGY.—The term ‘inno-
vative technology’ means a new conservation tech-
nology that, as determined by the Secretary—
‘‘(A) maximizes environmental benefits;
‘‘(B) complements agricultural production;
and
‘‘(C) may be adopted in a practical man-
ner.
‘‘(5) LAND MANAGEMENT PRACTICES.—The term
‘land management practice’ means a site-specific nu-
trient or manure management, integrated pest man-
agement, irrigation management, tillage or residue
management, grazing management, air quality man-
agement, or other land management practice carried
out on eligible land that the Secretary determines is
needed to protect from degradation, in the most cost-
effective manner, water, soil, or related resource.
‘‘(6) LIVESTOCK.—The term ‘livestock’ means
dairy cattle, beef cattle, laying hens, broilers, turkeys,
swine, sheep, and other such animals as are deter-
mined by the Secretary.
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‘‘(7) MANAGED GRAZING.—The term ‘managed
grazing’ means the application of 1 or more practices
that involve the frequent rotation of animals on graz-
ing land to—
‘‘(A) enhance plant health;
‘‘(B) limit soil erosion;
‘‘(C) protect ground and surface water qual-
ity; or
‘‘(D) benefit wildlife.
‘‘(8) MAXIMIZE ENVIRONMENTAL BENEFITS PER
DOLLAR EXPENDED.—
‘‘(A) IN GENERAL.—The term ‘maximize en-
vironmental benefits per dollar expended’ means
to maximize environmental benefits to the extent
the Secretary determines is practicable and ap-
propriate, taking into account the amount of
funding made available to carry out this chap-
ter.
‘‘(B) LIMATATION.—The term ‘maximize
environmental benefits per dollar expended’ does
not require the Secretary—
‘‘(i) to require the adoption of the least
cost practice or technical assistance; or
‘‘(ii) to require the development of a
plan under section 1240E as part of an ap-
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plication for payments or technical assist-
ance.
‘‘(9) PRACTICE.—The term ‘practice’ means 1 or
more structural practices, land management prac-
tices, and comprehensive nutrient management plan-
ning practices.
‘‘(10) PRODUCER.—
‘‘(A) IN
GENERAL.—The term ‘producer’
means an owner, operator, landlord, tenant, or
sharecropper that—
‘‘(i) shares in the risk of producing
any crop or livestock; and
‘‘(ii) is entitled to share in the crop or
livestock available for marketing from a
farm (or would have shared had the crop or
livestock been produced).
‘‘(B) HYBRID
SEED
GROWERS.—In deter-
mining whether a grower of hybrid seed is a pro-
ducer, the Secretary shall not take into consider-
ation the existence of a hybrid seed contract.
‘‘(11) PROGRAM.—The term ‘program’ means the
environmental quality incentives program comprised
of sections 1240 through 1240J.
‘‘(12) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means—
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‘‘(A) the establishment on eligible land of a
site-specific animal waste management facility,
terrace, grassed waterway, contour grass strip,
filterstrip, tailwater pit, permanent wildlife
habitat, constructed wetland, or other structural
practice that the Secretary determines is needed
to protect, in the most cost effective manner,
water, soil, or related resources from degrada-
tion; and
‘‘(B) the capping of abandoned wells on eli-
gible land.
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—During each of the 2002
through 2006 fiscal years, the Secretary shall provide
technical assistance, cost-share payments, and incen-
tive payments to producers that enter into contracts
with the Secretary under the program.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—A producer
that implements a structural practice shall be el-
igible for any combination of technical assist-
ance, cost-share payments, and education.
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‘‘(B) LAND
MANAGEMENT
PRACTICES.—A
producer that performs a land management
practice shall be eligible for any combination of
technical assistance, incentive payments, and
education.
‘‘(C) COMPREHENSIVE NUTRIENT MANAGE-
MENT PLANNING.—A producer that develops a
comprehensive nutrient management plan shall
be eligible for any combination of technical as-
sistance, incentive payments, and education.
‘‘(3) EDUCATION.—The Secretary may provide
conservation education at national, State, and local
levels consistent with the purposes of the program
to—
‘‘(A) any producer that is eligible for assist-
ance under the program; or
‘‘(B) any producer that is engaged in the
production of an agricultural commodity.
‘‘(b) APPLICATION AND TERM.—With respect to prac-
tices implemented under this program—
‘‘(1) a contract between a producer and the Sec-
retary may—
‘‘(A) apply to 1 or more structural prac-
tices, land management practices, and com-
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prehensive nutrient management planning prac-
tices; and
‘‘(B) have a term of not less that 3, or more
than 10 years, as determined appropriate by the
Secretary, depending on the practice or practices
that are the basis of the contract;
‘‘(2) a producer may not enter into more than
1 contract for structural practices involving livestock
nutrient management during the period of fiscal
years 2002 through 2006; and
‘‘(3) a producer that has an interest in more
than 1 large confined livestock operation, as defined
by the Secretary, may not enter into more than 1
contract for cost-share payments for a storage or
treatment facility, or associated waste transport or
transfer device, to manage manure, process waste-
water, or other animal waste generated by the large
confined livestock feeding operation.
‘‘(c) APPLICATION AND EVALUATION.—
‘‘(1) IN GENERAL.—The Secretary shall establish
an application and evaluation process for awarding
technical assistance, cost-share payments and incen-
tive payments to a producer in exchange for the per-
formance of 1 or more practices that maximize envi-
ronmental benefits per dollar expended.
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‘‘(2) COMPARABLE ENVIRONMENTAL VALUE.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a process for selecting applications for
technical assistance, cost-share payments, and
incentive payments in any case in which there
are numerous applications for assistance for
practices that would provide substantially the
same level of environmental benefits.
‘‘(B) CRITERIA.—The process under sub-
paragraph (A) shall be based on—
‘‘(i) a reasonable estimate of the pro-
jected cost of the proposals described in the
applications; and
‘‘(ii) the priorities established under
the program, and other factors, that maxi-
mize environmental benefits per dollar ex-
pended.
‘‘(3) CONSENT OF OWNER.—If the producer mak-
ing an offer to implement a structural practice is a
tenant of the land involved in agricultural produc-
tion, for the offer to be acceptable, the producer shall
obtain the consent of the owner of the land with re-
spect to the offer.
‘‘(4) BIDDING
DOWN.—If the Secretary deter-
mines that the environmental values of 2 or more ap-
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plications for technical assistance, cost-share pay-
ments, or incentive payments are comparable, the
Secretary shall not assign a higher priority to the ap-
plication only because it would present the least cost
to the program established under the program.
‘‘(d) COST-SHARE PAYMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the cost-share payments provided to a pro-
ducer proposing to implement 1 or more practices
under the program shall be not more than 75 percent
of the cost of the practice, as determined by the Sec-
retary.
‘‘(2) EXCEPTIONS.—
‘‘(A) LIMITED RESOURCE AND BEGINNING
FARMERS.—The Secretary may increase the
amount provided to a producer under paragraph
(1) to not more than 90 percent if the producer
is a limited resource or beginning farmer or
rancher, as determined by the Secretary.
‘‘(B) 
COST-SHARE
ASSISTANCE
FROM
OTHER SOURCES.—Except as provided in para-
graph (3), any cost-share payments received by
a producer from a State or private organization
or person for the implementation of 1 or more
practices on eligible land of the producer shall be
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in addition to the payments provided to the pro-
ducer under paragraph (1).
‘‘(3) OTHER PAYMENTS.—A producer shall not
be eligible for cost-share payments for practices on eli-
gible land under the program if the producer receives
cost-share payments or other benefits for the same
practice on the same land under chapter 1 and the
program.
‘‘(e) INCENTIVE PAYMENTS.—The Secretary shall make
incentive payments in an amount and at a rate determined
by the Secretary to be necessary to encourage a producer
to perform 1 or more practices.
‘‘(f) TECHNICAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall allocate
funding under the program for the provision of tech-
nical assistance according to the purpose and pro-
jected cost for which the technical assistance is pro-
vided for a fiscal year.
‘‘(2) AMOUNT.—The allocated amount may vary
according to—
‘‘(A) the type of expertise required;
‘‘(B) the quantity of time involved; and
‘‘(C) other factors as determined appro-
priate by the Secretary.
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‘‘(3) LIMITATION.—Funding for technical assist-
ance under the program shall not exceed the projected
cost to the Secretary of the technical assistance pro-
vided for a fiscal year.
‘‘(4) OTHER AUTHORITIES.—The receipt of tech-
nical assistance under the program shall not affect the
eligibility of the producer to receive technical assist-
ance under other authorities of law available to the
Secretary.
‘‘(5) INCENTIVE PAYMENTS FOR TECHNICAL AS-
SISTANCE.—
‘‘(A) IN GENERAL.—A producer that is eli-
gible to receive technical assistance for a practice
involving the development of a comprehensive
nutrient management plan may obtain an in-
centive payment that can be used to obtain tech-
nical assistance associated with the development
of any component of the comprehensive nutrient
management plan.
‘‘(B) PURPOSE.—The purpose of the pay-
ment shall be to provide a producer the option
of obtaining technical assistance for developing
any component of a comprehensive nutrient
management plan from a certified provider.
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‘‘(C) PAYMENT.—The incentive payment
shall be—
‘‘(i) in addition to cost-share or incen-
tive payments that a producer would other-
wise receive for structural practices and
land management practices;
‘‘(ii) used only to procure technical as-
sistance from a certified provider that is
necessary to develop any component of a
comprehensive nutrient management plan;
and
‘‘(iii) in an amount determined appro-
priate 
by 
the 
Secretary, 
taking 
into
account—
‘‘(I) the extent and complexity of
the technical assistance provided;
‘‘(II) the costs that the Secretary
would have incurred in providing the
technical assistance; and
‘‘(III) the costs incurred by the
private provider in providing the tech-
nical assistance.
‘‘(D) ELIGIBLE PRACTICES.—The Secretary
may determine, on a case by case basis, whether
the development of a comprehensive nutrient
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management plan is eligible for an incentive
payment under this paragraph.
‘‘(E) CERTIFICATION BY SECRETARY.—
‘‘(i) IN GENERAL.—Only persons that
have been certified by the Secretary under
section 1244(f)(3) shall be eligible to provide
technical assistance under this subsection.
‘‘(ii) QUALITY ASSURANCE.—The Sec-
retary shall ensure that certified providers
are capable of providing technical assist-
ance 
regarding 
comprehensive 
nutrient
management in a manner that meets the
specifications and guidelines of the Sec-
retary and that meets the needs of producers
under the program.
‘‘(F) ADVANCE
PAYMENT.—On the deter-
mination of the Secretary that the proposed com-
prehensive nutrient management of a producer is
eligible for an incentive payment, the producer
may receive a partial advance of the incentive
payment in order to procure the services of a cer-
tified provider.
‘‘(G) FINAL
PAYMENT.—The final install-
ment of the incentive payment shall be payable
to a producer on presentation to the Secretary of
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documentation that is satisfactory to the Sec-
retary and that demonstrates—
‘‘(i) completion of the technical assist-
ance; and
‘‘(ii) the actual cost of the technical as-
sistance.
‘‘(g) MODIFICATION
OR
TERMINATION
OF
CON-
TRACTS.—
‘‘(1) VOLUNTARY
MODIFICATION
OR
TERMI-
NATION.—The Secretary may modify or terminate a
contract entered into with a producer under this
chapter if—
‘‘(A) the producer agrees to the modification
or termination; and
‘‘(B) the Secretary determines that the
modification or termination is in the public in-
terest.
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under this chapter
if the Secretary determines that the producer violated
the contract.
‘‘SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.
‘‘(a) IN GENERAL.—In evaluating applications for
technical assistance, cost-share payments, and incentive
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payments, the Secretary shall accord a higher priority to
assistance and payments that—
‘‘(1) maximize environmental benefits per dollar
expended; and
‘‘(2)(A) address national conservation priorities,
including—
‘‘(i) meeting Federal, State, and local envi-
ronmental purposes focused on protecting air
and water quality, including assistance to pro-
duction systems and practices that avoid sub-
jecting an operation to Federal, State, or local
environmental regulatory systems;
‘‘(ii) applications from livestock producers
using managed grazing systems and other pas-
ture and forage based systems;
‘‘(iii) comprehensive nutrient management;
‘‘(iv) water quality, particularly in im-
paired watersheds;
‘‘(v) soil erosion;
‘‘(vi) air quality; or
‘‘(vii) pesticide and herbicide management
or reduction;
‘‘(B) are provided in conservation priority areas
established under section 1230(c);
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‘‘(C) are provided in special projects under sec-
tion 1243(f)(4) with respect to which State or local
governments have provided, or will provide, financial
or technical assistance to producers for the same con-
servation or environmental purposes; or
‘‘(D) an innovative technology in connection
with a structural practice or land management prac-
tice.
‘‘SEC. 1240D. DUTIES OF PRODUCERS.
‘‘To receive technical assistance, cost-share payments,
or incentive payments under the program, a producer shall
agree—
‘‘(1) to implement an environmental quality in-
centives program plan that describes conservation and
environmental purposes to be achieved through 1 or
more practices that are approved by the Secretary;
‘‘(2) not to conduct any practices on the farm or
ranch that would tend to defeat the purposes of the
program;
‘‘(3) on the violation of a term or condition of
the contract at anytime the producer has control of
the land—
‘‘(A) if the Secretary determines that the
violation warrants termination of the contract—
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‘‘(i) to forfeit all rights to receive pay-
ments under the contract; and
‘‘(ii) to refund to the Secretary all or
a portion of the payments received by the
owner or operator under the contract, in-
cluding any interest on the payments, as
determined by the Secretary; or
‘‘(B) if the Secretary determines that the
violation does not warrant termination of the
contract, to refund to the Secretary, or accept
adjustments to, the payments provided to the
owner or operator, as the Secretary determines to
be appropriate;
‘‘(4) on the transfer of the right and interest of
the producer in land subject to the contract, unless the
transferee of the right and interest agrees with the
Secretary to assume all obligations of the contract, to
refund all cost-share payments and incentive pay-
ments received under the program, as determined by
the Secretary;
‘‘(5) to supply information as required by the
Secretary to determine compliance with the program
plan and requirements of the program;
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‘‘(6) to comply with such additional provisions
as the Secretary determines are necessary to carry out
the program plan; and
‘‘(7) to submit a list of all confined livestock
feeding operations wholly or partially owned or oper-
ated by the applicant.
‘‘SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM PLAN.
‘‘(a) IN GENERAL.—To be eligible to receive technical
assistance, cost-share payments, or incentive payments
under the program, a producer of a livestock or agricultural
operation shall submit to the Secretary for approval a plan
of operations that specifies practices covered under the pro-
gram, and is based on such terms and conditions, as the
Secretary considers necessary to carry out the program, in-
cluding a description of the practices to be implemented and
the purposes to be met by the implementation of the plan,
and in the case of confined livestock feeding operations, de-
velopment and implementation of a comprehensive nutrient
management plan, and in the case of confined livestock feed-
ing operations, development and implementation of a com-
prehensive nutrient management plan.
‘‘(b) AVOIDANCE
OF DUPLICATION.—The Secretary
shall, to the maximum extent practicable, eliminate dupli-
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cation of planning activities under the program and com-
parable conservation programs.
‘‘SEC. 1240F. DUTIES OF THE SECRETARY.
‘‘To the extent appropriate, the Secretary shall assist
a producer in achieving the conservation and environ-
mental goals of a program plan by—
‘‘(1) providing technical assistance in developing
and implementing the plan;
‘‘(2) providing technical assistance, cost-share
payments, or incentive payments for developing and
implementing 1 or more practices, as appropriate;
‘‘(3) providing the producer with information,
education, and training to aid in implementation of
the plan; and
‘‘(4) encouraging the producer to obtain tech-
nical assistance, cost-share payments, or grants from
other Federal, State, local, or private sources.
‘‘SEC. 1240G. LIMITATION ON PAYMENTS.
‘‘(a) IN GENERAL.—Subject to subsection (b), the total
amount of cost-share and incentive payments paid to a pro-
ducer under this chapter shall not exceed—
‘‘(1) $30,000 for any fiscal year, regardless of
whether the producer has more than 1 contract under
this chapter for the fiscal year;
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‘‘(2) $90,000 for a contract with a term of 3
years;
‘‘(3) $120,000 for a contract with a term of 4
years; or
‘‘(4) $150,000 for a contract with a term of more
than 4 years.
‘‘(b) ATTRIBUTION.—An individual or entity shall not
receive, directly or indirectly, total payments from single
or multiple contracts under this chapter that exceed $30,000
for any fiscal year.
‘‘(c) EXCEPTION TO ANNUAL LIMIT.—The Secretary
may exceed the limitation on the annual amount of a pay-
ment to a producer under subsection (a)(1) if the Secretary
determines that a larger payment is—
‘‘(1) essential to accomplish the land manage-
ment practice or structural practice for which the
payment is made to the producer; and
‘‘(2) consistent with the maximization of envi-
ronmental benefits per dollar expended and the pur-
poses of this chapter.
‘‘(d) VERIFICATION.—The Secretary shall identify in-
dividuals and entities that are eligible for a payment under
the program using social security numbers and taxpayer
identification numbers, respectively.
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‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS.
‘‘(a) IN GENERAL.—From funds made available to
carry out the program, for each of the 2003 through 2006
fiscal years, the Secretary shall use not more than
$100,000,000 for each fiscal year to pay the cost of competi-
tive grants that are intended to stimulate innovative ap-
proaches to leveraging Federal investment in environmental
enhancement and protection, in conjunction with agricul-
tural production, through the program.
‘‘(b) USE.—The Secretary may award grants under
this section to governmental and nongovernmental organi-
zations and persons, on a competitive basis, to carry out
projects that—
‘‘(1) involve producers that are eligible for pay-
ments or technical assistance under the program;
‘‘(2) implement innovative projects, such as—
‘‘(A) market systems for pollution reduction;
‘‘(B) promoting agricultural best manage-
ment practices, including the storing of carbon
in the soil;
‘‘(C) protection of source water for human
consumption; and
‘‘(D) reducing negative effects on water-
sheds, including through the significant reduc-
tion in nutrient applications, as determined by
the Secretary; and
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‘‘(3) leverage funds made available to carry out
the program with matching funds provided by State
and local governments and private organizations to
promote environmental enhancement and protection
in conjunction with agricultural production.
‘‘(c) COST SHARE.—The amount of a grant made
under this section to carry out a project shall not exceed
50 percent of the cost of the project.
‘‘(d) UNUSED FUNDING.—Any funds made available
for a fiscal year under this section that are not obligated
by April 1 of the fiscal year may be used to carry out other
activities under this chapter during the fiscal year in which
the funding becomes available.
‘‘SEC. 1240I. SOUTHERN HIGH PLAINS AQUIFER GROUND-
WATER CONSERVATION.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ACTIVITY.—
‘‘(A) IN GENERAL.—The term ‘eligible activ-
ity’ means an activity carried out to conserve
groundwater.
‘‘(B) INCLUSIONS.—The term ‘eligible activ-
ity’ includes an activity to—
‘‘(i) improve an irrigation system;
‘‘(ii) reduce the use of water for irriga-
tion (including changing from high-water
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intensity crops to low-water intensity
crops); or
‘‘(iii) convert from farming that uses
irrigation to dryland farming.
‘‘(2) SOUTHERN
HIGH
PLAINS
AQUIFER.—The
term ‘Southern High Plains Aquifer’ means the por-
tion of the groundwater reserve under Kansas, New
Mexico, Oklahoma, and Texas depicted as Figure 1 in
the United States Geological Survey Professional
Paper 1400–B, entitled ‘Geohydrology of the High
Plains Aquifer in Parts of Colorado, Kansas, Ne-
braska, New Mexico, Oklahoma, South Dakota, Texas,
and Wyoming’.
‘‘(b) CONSERVATION MEASURES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall provide cost-share payments, incentive
payments, and groundwater education assistance to
producers that draw water from the Southern High
Plains Aquifer to carry out eligible activities.
‘‘(2) LIMITATIONS.—The Secretary shall provide
a payment to a producer under this section only if
the Secretary determines that the payment will result
in a net savings in groundwater resources on the land
of the producer.
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‘‘(3) COOPERATION.—In accordance with this
subtitle, in providing groundwater education under
this subsection, the Secretary shall cooperate with—
‘‘(A) States;
‘‘(B) land-grant colleges and universities;
‘‘(C) other educational institutions;
‘‘(D) State cooperative extension services;
and
‘‘(E) private organizations.
‘‘(c) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds made available
under section 1241(b) to carry out the program, the
Secretary shall use to carry out this section—
‘‘(A) $15,000,000 for fiscal year 2003;
‘‘(B) $25,000,000 for each of fiscal years
2004 and 2005;
‘‘(C) $35,000,000 for fiscal year 2006; and
‘‘(D) $0 for fiscal year 2007.
‘‘(2) OTHER FUNDS.—Subject to paragraph (3),
the funds made available under this subsection shall
be in addition to any other funds provided under the
program.
‘‘(3) UNUSED FUNDING.—Any funds made avail-
able for a fiscal year under paragraph (1) that are
not obligated by April 1 of the fiscal year shall be
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used to carry out other activities in other States
under the program.
‘‘SEC. 1240J. PILOT PROGRAMS.
‘‘(a) DRINKING
WATER
SUPPLIERS
PILOT
PRO-
GRAM.—
‘‘(1) IN GENERAL.—For each fiscal year, the Sec-
retary may carry out, in watersheds selected by the
Secretary, in cooperation with local water utilities, a
pilot program to improve water quality.
‘‘(2) IMPLEMENTATION.—The Secretary may se-
lect the watersheds referred to in paragraph (1), and
make available funds (including funds for the provi-
sion of incentive payments) to be allocated to pro-
ducers in partnership with drinking water utilities in
the watersheds, if the drinking water utilities agree to
measure water quality at such intervals and in such
a manner as may be determined by the Secretary.
‘‘(b) NUTRIENT REDUCTION PILOT PROGRAM.—
‘‘(1) DEFINITION
OF
CHESAPEAKE
EXECUTIVE
COUNCIL.—In this subsection, the term ‘Chesapeake
Executive Council’ means the Federal-State council—
‘‘(A) comprised of—
‘‘(i) the mayor of the District of Co-
lumbia;
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‘‘(ii) the Governors of the States of
Maryland, Pennsylvania, and Virginia;
‘‘(iii) the Administrator of the Envi-
ronmental Protection Agency; and
‘‘(iv) the Chair of the Chesapeake Bay
Commission; and
‘‘(B) charged with the policy leadership, co-
ordination, and implementation of the region-
wide Chesapeake Bay Program restoration effort.
‘‘(2) PROGRAM.—For each of fiscal years 2003
through 2006, the Secretary shall use funds made
available to carry out the program, in the amounts
specified in paragraph (5), in the Chesapeake Bay
watershed to provide incentive payments to producers
to—
‘‘(A) reduce nutrient loads to the Chesa-
peake Bay; and
‘‘(B) achieve the goals of the Chesapeake Ex-
ecutive Council.
‘‘(3) PRIORITY; MEASUREMENT; PAYMENTS.—In
carrying out paragraph (2), the Secretary shall—
‘‘(A) give priority to nutrient reduction
techniques that reduce nutrient applications
rates to a level that is substantially below the
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level recommended in a best management prac-
tice (as identified by the Secretary);
‘‘(B) measure any reduction in nutrient ap-
plication rates by an appropriate indicator of
actual performance (such as the level of nutrients
applied or fixed in excess of crop removal); and
‘‘(C) increase the amount of an incentive
payment to a producer to reflect superior per-
formance by the producer.
‘‘(4) PARTNERSHIPS.—The Secretary shall carry
out this subsection in partnership with—
‘‘(A) State governments;
‘‘(B) nonprofit organizations approved by
the Secretary; and
‘‘(C) State colleges and universities.
‘‘(5) FUNDING.—
‘‘(A) IN GENERAL.—Of the amounts made
available under section 1241(b) to carry out the
program, the Secretary shall use to carry out
this subsection—
‘‘(i) $10,000,000 for fiscal year 2003;
‘‘(ii) $15,000,000 for fiscal year 2004;
‘‘(iii) $20,000,000 for fiscal year 2005;
‘‘(iv) $25,000,000 for fiscal year 2006;
and
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‘‘(v) $0 for fiscal year 2007.
‘‘(B) UNEXPENDED
FUNDS.—Any funds
made available for a fiscal year under subpara-
graph (A) that are not obligated by April 1 of
the fiscal year shall be used to carry out other
activities under this chapter.
‘‘(c) CONSISTENCY WITH WATERSHED PLAN.—In allo-
cating funds for the pilot programs under subsections (a)
and (b) and any other pilot programs carried out under
the program, the Secretary shall take into consideration the
extent to which an application for the funds is consistent
with—
‘‘(1) any applicable locally developed watershed
plan; and
‘‘(2) the factors established by section 1240C.
‘‘(d) CONTRACTS.—
‘‘(1) IN GENERAL.—In carrying out this section,
in addition to other requirements under the program,
the Secretary shall enter into contracts in accordance
with this section with producers the activities of
which affect water quality (including the quality of
public drinking water supplies) to implement and
maintain—
‘‘(A) nutrient management;
‘‘(B) pest management;
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‘‘(C) soil erosion practices; and
‘‘(D) other conservation activities that pro-
tect water quality and human health.
‘‘(2) REQUIREMENTS.—A contract described in
paragraph (1) shall—
‘‘(A) describe the specific nutrient manage-
ment, pest management, soil erosion, or other
practices to be implemented, maintained, or im-
proved;
‘‘(B) contain a schedule of implementation
for those practices;
‘‘(C) to the maximum extent practicable,
address water quality priorities of the watershed
in which the operation is located; and
‘‘(D) contain such other terms as the Sec-
retary determines to be appropriate.’’.
(b) FUNDING.—Section 1241 of the Food Security Act
of 1985 (16 U.S.C. 3841) is amended by striking subsection
(b) and inserting the following:
‘‘(b) ENVIRONMENTAL
QUALITY
INCENTIVES
PRO-
GRAM.—Subject to section 241 of the Agriculture, Conserva-
tion, and Rural Enhancement Act of 2002, of the funds of
the Commodity Credit Corporation, the Secretary shall
make available to provide technical assistance, cost-share
payments, incentive payments, bonus payments, grants,
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and education under the environmental quality incentives
program under chapter 4 of subtitle D, to remain available
until expended—
‘‘(1) $500,000,000 for fiscal year 2002;
‘‘(2) $1,300,000,000 for fiscal year 2003;
‘‘(3) $1,450,000,000 for each of fiscal years 2004
and 2005;
‘‘(4) $1,500,000,000 for fiscal year 2006; and
‘‘(5) $850,000,000 for fiscal year 2007.’’.
(c) REIMBURSEMENTS.—Section 11 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714i) is amend-
ed in the last sentence by inserting ‘‘but excluding transfers
and allotments for conservation technical assistance’’ after
‘‘activities’’.
SEC. 214. WETLANDS RESERVE PROGRAM.
(a) TECHNICAL ASSISTANCE.—Section 1237(a) of the
Food Security Act of 1985 (16 U.S.C. 3837(a)) is amended
by inserting ‘‘(including the provision of technical assist-
ance)’’ before the period at the end.
(b) MAXIMUM ENROLLMENT.—Section 1237(b) of the
Food Security Act of 1985 (16 U.S.C. 3837(b)) is amended
by striking paragraph (1) and inserting the following:
‘‘(1) MAXIMUM ENROLLMENT.—
‘‘(A) IN
GENERAL.—The total number of
acres enrolled in the wetlands reserve program
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shall not exceed 2,225,000 acres, of which, to the
maximum extent practicable subject to subpara-
graph (B), the Secretary shall enroll 250,000
acres in each calendar year.
‘‘(B) WETLANDS
RESERVE
ENHANCEMENT
ACREAGE.—Of the acreage enrolled under sub-
paragraph (A) for a calendar year, not more
than 25,000 acres may be enrolled in the wet-
lands reserve enhancement program described in
subsection (h).’’.
(c) REAUTHORIZATION.—Section 1237(c) of the Food
Security Act of 1985 (16 U.S.C. 3837(c)) is amended by
striking ‘‘2002’’ and inserting ‘‘2006’’.
(d) WETLANDS RESERVE ENHANCEMENT PROGRAM.—
Section 1237 of the Food Security Act of 1985 (16 U.S.C.
3837) is amended by adding at the end the following:
‘‘(h) WETLANDS
RESERVE
ENHANCEMENT
PRO-
GRAM.—
‘‘(1) IN GENERAL.—Notwithstanding the Federal
Grant and Cooperative Agreement Act of 1977 (41
U.S.C. 501 et seq.), the Secretary may enter into co-
operative agreements with State or local governments,
and with private organizations, to develop, on land
that is enrolled, or is eligible to be enrolled, in the
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wetland reserve established under this subchapter,
wetland restoration activities in watershed areas.
‘‘(2) PURPOSE.—The purpose of the agreements
shall be to address critical environmental issues.
‘‘(3) RELATIONSHIP TO OTHER AUTHORITIES.—
Nothing in this subsection limits the authority of the
Secretary to enter into a cooperative agreement with
a party under which agreement the Secretary and the
party—
‘‘(A) share a mutual interest in the pro-
gram under this subchapter; and
‘‘(B) contribute resources to accomplish the
purposes of that program.’’.
(e) 
MONITORING
AND
MAINTENANCE.—Section
1237C(a)(2) of the Food Security Act of 1985 (16 U.S.C.
3837c(a)(2)) is amended by striking ‘‘assistance’’ and in-
serting ‘‘assistance (including monitoring and mainte-
nance)’’.
SEC. 215. WATER CONSERVATION.
(a) IN GENERAL.—Section 1231(d) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831(d)) (as amended by sec-
tion 212(c)) is amended by striking ‘‘41,100,000’’ and in-
serting ‘‘40,000,000’’.
(b) ADDITIONAL WATER CONSERVATION ACREAGE
UNDER CONSERVATION RESERVE ENHANCEMENT PRO-
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GRAM.—Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) (as amended by section 212(f)) is amended
by adding at the end the following:
‘‘(j) ADDITIONAL WATER CONSERVATION ACREAGE
UNDER CONSERVATION RESERVE ENHANCEMENT PRO-
GRAM.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE ENTITY.—
‘‘(i) IN GENERAL.—The term ‘eligible
entity’ means—
‘‘(I)(aa) an owner or operator of
agricultural land; or
‘‘(bb) a person or entity that holds
water rights in accordance with or rec-
ognized by State law (including a ben-
eficial owner of water rights in accord-
ance with State law through direct
contract with the individual or entity
having legal title to the water rights);
and
‘‘(II) any other landowner.
‘‘(ii) INCLUSIONS.—The term ‘eligible
entity’ includes an irrigation district, water
district, or similar governmental entity in
the State of California.
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‘‘(B) 
PROGRAM.—The 
term 
‘program’
means the conservation reserve enhancement pro-
gram described in a notice issued on May 27,
1998 (63 Fed. Reg. 28965).
‘‘(2) 
PROTECTION
OF
PRIVATE
PROPERTY
RIGHTS.—
‘‘(A) WILLING SELLERS AND LESSORS.—An
agreement may be executed under this subsection
only if each eligible entity that is a party to the
agreement is a willing seller or willing lessor.
‘‘(B) PROPERTY RIGHTS.—Nothing in this
subsection authorizes the Federal Government or
any State government to condemn private prop-
erty.
‘‘(3) ENROLLMENT.—In addition to the acreage
authorized to be enrolled under subsection (d), in car-
rying out the program, the Secretary, in consultation
with eligible States, shall enroll not more than
500,000 acres in eligible States to promote water con-
servation.
‘‘(4) ELIGIBLE STATES.—To be eligible to par-
ticipate in the program, a State—
‘‘(A) shall submit to the Secretary, for re-
view and approval, a proposal that meets the re-
quirements of the program; and
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‘‘(B) shall—
‘‘(i) have established a program or sys-
tem to protect in-stream flows or uses; and
‘‘(ii) agree to hold water rights leased
or purchased under a proposal submitted
under subparagraph (A).
‘‘(5) ELIGIBLE
ACREAGE.—An eligible entity
may enroll in the program land in an eligible State
that is adjacent to a watercourse or lake, or land that
would contribute to the restoration of a watercourse
or lake (as determined by the Secretary), if—
‘‘(A)(i) the land can be restored as a wet-
land, grassland, or other habitat, as determined
by the Secretary in accordance with the field of-
fice technical guides and handbooks of the Nat-
ural Resources Conservation Service; and
‘‘(ii) the restoration would significantly im-
prove riparian functions, as determined by the
Secretary; or
‘‘(B) water or water rights appurtenant to
the land are leased or sold to an appropriate
State agency or State-designated water trust, as
determined by the Secretary.
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‘‘(6) RELATIONSHIP TO OTHER ACREAGE.—For
any fiscal year, acreage enrolled under this subsection
shall not affect the quantity of—
‘‘(A) acreage enrolled to establish conserva-
tion buffers as part of the program described in
a notice issued on March 24, 1998 (63 Fed. Reg.
14109);
‘‘(B) acreage enrolled in the program before
the date of enactment of this subsection; or
‘‘(C) acreage that, as of the date of enact-
ment of this subsection, is committed by the Sec-
retary for enrollment in the program in any
State.
‘‘(7) DUTIES OF ELIGIBLE ENTITIES.—Under a
contract entered into with respect to enrolled land
under the program, during the term of the contract,
an eligible entity shall agree—
‘‘(A)(i) to restore the hydrology of the en-
rolled land to the maximum extent practicable,
as determined by the Secretary; and
‘‘(ii) to establish on the enrolled land wet-
land, grassland, vegetative cover, or other habi-
tat, as determined by the Secretary; or
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‘‘(B) to transfer to the State, or a designee
of the State, water rights appurtenant to the en-
rolled land.
‘‘(8) RENTAL RATES.—
‘‘(A) IRRIGATED LAND.—With respect to ir-
rigated land enrolled in the program, the rental
rate shall be established by the Secretary—
‘‘(i) on a watershed basis;
‘‘(ii) using data available as of the
date on which the rental rate is established;
and
‘‘(iii) at a level sufficient to ensure, to
the maximum extent practicable, that the el-
igible entity is fairly compensated for the
irrigated land value of the enrolled land.
‘‘(B) NONIRRIGATED
LAND.—With respect
to nonirrigated land enrolled in the program, the
rental rate shall be calculated by the Secretary,
in accordance with the conservation reserve pro-
gram manual of the Department.
‘‘(C) APPLICABILITY.—An eligible entity
that enters into a contract to enroll land into the
program shall receive, in exchange for the enroll-
ment, payments that are based on—
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‘‘(i) the irrigated rental rate described
in subparagraph (A), if the owner or oper-
ator agrees to enter into an agreement with
the State and approved by the Secretary
under which the State leases, for in-stream
flow purposes or uses, surface water appur-
tenant to the enrolled land; or
‘‘(ii) the nonirrigated rental rate de-
scribed in subparagraph (B), if an owner or
operator does not enter into an agreement
described in clause (i).
‘‘(9) PRIORITY.—In carrying out this subsection,
the Secretary shall give priority consideration to any
State proposal that—
‘‘(A) provides a State or non-Federal share
of 20 percent or more of the cost of the proposal;
and
‘‘(B) significantly advances the goals of
Federal, State, tribal, and local fish, wildlife,
and plant conservation plans, including—
‘‘(i) plans that address—
‘‘(I) multiple endangered species
or threatened species (as defined in sec-
tion 3 of the Endangered Species Act
of 1973 (16 U.S.C. 1532)); or
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‘‘(II) species that may become
threatened or endangered if conserva-
tion measures are not carried out;
‘‘(ii) agreements entered into, or con-
servation plans submitted, under section 6
or 10(a)(2)(A), respectively, of the Endan-
gered Species Act of 1973 (16 U.S.C. 1535,
1539(a)(2)(A)); or
‘‘(iii) plans that provide benefits to the
fish, wildlife, or plants located in 1 or
more—
‘‘(I) refuges within the National
Wildlife Refuge System; or
‘‘(II) State wildlife management
areas.
‘‘(10) CONSULTATION.—In carrying out this sub-
section, the Secretary shall consult with—
‘‘(A) the Secretary of the Interior;
‘‘(B) eligible States;
‘‘(C) affected Indian tribes; and
‘‘(D) any affected irrigation districts estab-
lished or recognized under State law.
‘‘(11) STATE
WATER
LAW.—Nothing in this
subsection—
‘‘(A) preempts any State water law;
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‘‘(B) affects any litigation concerning the
right or entitlement to, or lack of right or entitle-
ment to, water that is pending as of the date of
enactment of this subsection;
‘‘(C) expands, alters, or otherwise affects the
existence or scope of any water right of any indi-
vidual (except to the extent that the individual
agrees otherwise under the program); or
‘‘(D) authorizes or entitles the Federal Gov-
ernment to hold or purchase any water right.
‘‘(12) IMPLEMENTATION.—In carrying out this
subsection, the Secretary shall comply with—
‘‘(A) all interstate compacts, court decrees,
and Federal and State laws (including regula-
tions) that may affect water or water rights; and
‘‘(B) all procedural and substantive State
water law.
‘‘(13) CALIFORNIA WATER LAW.—
‘‘(A) IN
GENERAL.—Nothing in this sub-
section authorizes the Secretary to enter into an
agreement, in accordance with this subsection,
with a landowner for water obtained from an ir-
rigation district, water district, or other similar
governmental entity in the State of California.
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‘‘(B) DISTRICT PROGRAMS.—All landowners
participating in the program through member-
ship in a district or entity described in subpara-
graph (A) shall be willing participants in the
program.
‘‘(14) GROUNDWATER.—A right to groundwater
shall not be subject to any provision of this subsection
unless the right is granted—
‘‘(A) under applicable State law; and
‘‘(B) through a groundwater water rights
process that is fully integrated with the surface
water rights process of the applicable affected
State.
‘‘(15) PROHIBITION
ON
FEDERAL
PURCHASE,
LEASE, AND
RETENTION
OF
WATER
RIGHTS.—No
water rights under this subsection shall be purchased,
leased, or held by the Secretary or any other officer
or agent of the Federal Government.
‘‘(16) STATE
FLEXIBILITY.—With respect to
State participation in the program—
‘‘(A) nothing in this subsection limits any
State application to participate in the program;
and
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‘‘(B) the Secretary shall accord States full
flexibility to carry out projects and activities
under the program.
‘‘(17) ELIGIBLE STATES.—Eligible States under
this program shall include only Nevada, California,
New Mexico, Washington, Oregon, Maine and New
Hampshire.’’.
(c) WATER BENEFITS PROGRAM.—Subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) is amended by adding at the end the following:
‘‘CHAPTER 6—WATER CONSERVATION
‘‘SEC. 1240R. WATER BENEFITS PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—
‘‘(A) IN GENERAL.—The term ‘eligible enti-
ty’ means—
‘‘(i)(I) an owner or operator of agri-
cultural land; or
‘‘(II) a person or entity that holds
water rights in accordance with or recog-
nized by State law (including a beneficial
owner of water rights in accordance with
State law through direct contract with the
individual or entity having legal title to the
water rights); and
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‘‘(ii) any other landowner.
‘‘(B) INCLUSIONS.—The term ‘eligible enti-
ty’ includes an irrigation district, water district,
or similar governmental entity in the State of
California.
‘‘(2) PROGRAM.—The term ‘program’ means the
water benefits program established under subsection
(b).
‘‘(b) ESTABLISHMENT.—The Secretary, in consulta-
tion with eligible States, shall establish a program to pro-
mote water conservation, to be known as the ‘water benefits
program’, under which the Secretary shall, through the Nat-
ural Resources Conservation Service, in consultation with
eligible States, provide cost-share payments to willing eligi-
ble entities for—
‘‘(1) in accordance with subsection (f), irrigation
efficiency infrastructure or measures that provide in-
stream flows for fish and wildlife and other environ-
mental purposes or uses;
‘‘(2) converting from production of a water-in-
tensive crop to a crop that requires less water; or
‘‘(3)(A) the lease, purchase, dry-year optioning,
transfer, or dedication of water or water rights to
provide, directly or indirectly through mechanisms
consistent with State water law, in-stream flows for
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fish and wildlife and other environmental purposes or
uses (including wetland restoration); or
‘‘(B) the conservation, provision, and protection
of water to benefit fish and wildlife under a State
plan approved by the Secretary for those purposes.
‘‘(c) PROTECTION OF PRIVATE PROPERTY RIGHTS.—
‘‘(1) WILLING
SELLERS
AND
LESSORS.—An
agreement may be executed under this section only if
each eligible entity that is a party to the agreement
is a willing seller or willing lessor.
‘‘(2) PROPERTY RIGHTS.—Nothing in this sec-
tion authorizes the Federal Government or any State
government to condemn private property.
‘‘(d) ELIGIBLE STATES.—An eligible entity may re-
ceive a payment under the program if the State in which
the eligible entity is located—
‘‘(1)(A) submits to the Secretary a State plan
under which the State holds and enforces water rights
leased, purchased, dry-year optioned, transferred, or
dedicated to provide for in-stream flows or other uses
that benefit fish and wildlife; or
‘‘(B) otherwise establishes a State program to
conserve, provide, and protect water to benefit fish
and wildlife approved by the Secretary;
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‘‘(2)(A) submits to the Secretary a State plan to
protect in-stream flows or uses; and
‘‘(B) obtains approval of the State programs and
plans by the Secretary;
‘‘(3) designates a State agency to administer the
State programs and plans;
‘‘(4) subjects each lease, purchase, dry-year
optioning, transfer, and dedication of water and
water rights to any review and approval required
under State law, such as review and approval by a
water board, water court, or water engineer of the
State; and
‘‘(5) ensure that each lease, purchase, dry-year
optioning, transfer, and dedication of water and
water rights is consistent with State water law.
‘‘(e) ROLE OF SECRETARY.—In carrying out this sec-
tion, the Secretary shall—
‘‘(1) establish guidelines for participating States
to pay a portion of the cost of assisting the conversion
from production of water-intensive crops to crops that
require less water;
‘‘(2) establish guidelines, in accordance with the
field office and technical guides and handbooks of the
Natural Resources Conservation Service, for assisting
with the cost of on-farm and off-farm irrigation effi-
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ciency infrastructure and measures described in sub-
section (f)(2);
‘‘(3) establish guidelines for participating States
for—
‘‘(A) 
the 
lease, 
purchase, 
dry-year
optioning, transfer, and dedication of water and
water rights under State plans; or
‘‘(B) the conservation, provision, and pro-
tection of water to benefit fish and wildlife under
a program described in subsection (b)(3)(B);
‘‘(4) establish a program within the Agricultural
Research Service, in collaboration with the United
States Geological Survey, to monitor State efforts
under the program, including the construction and
maintenance of stream gauging stations; and
‘‘(5) consult with eligible States, the Secretary of
the Interior, affected Indian tribes, and each affected
irrigation district established under or recognized by
State law that makes water available to a partici-
pating eligible entity, particularly with respect to the
establishment and implementation of the program.
‘‘(f) IRRIGATION EFFICIENCY INFRASTRUCTURE AND
MEASURES.—
‘‘(1) IN GENERAL.—The Secretary may pay—
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‘‘(A) not more than 75 percent of the cost
of converting from production of a water-inten-
sive crop to a crop that requires less water, as
described in subsection (e)(2); and
‘‘(B) the share determined under subsection
(g) of the cost of on-farm and, in cases in which
an irrigation ditch crosses more than 1 farm,
off-farm irrigation efficiency infrastructure and
measures described in paragraph (2) if not less
than 75 percent of the water conserved as a re-
sult of the infrastructure and measures is perma-
nently allocated, directly or indirectly, to in-
stream flows or uses.
‘‘(2) ELIGIBLE IRRIGATION EFFICIENCY INFRA-
STRUCTURE AND MEASURES.—Eligible irrigation effi-
ciency land-based and fixed infrastructure and meas-
ures referred to in paragraph (1) are—
‘‘(A) lining of ditches, insulation or instal-
lation of piping, and installation of ditch portals
or gates;
‘‘(B) tail water return systems;
‘‘(C) low-energy precision applications;
‘‘(D) low-flow irrigation systems, including
drip and trickle systems and micro-sprinkler
systems;
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‘‘(E) surge valves;
‘‘(F) off-stream storage ponds inundating
less than 5 acres that the Secretary, in consulta-
tion with the State, the Secretary of the Interior,
and the Secretary of Commerce, determines to be
appropriate to carry out the program;
‘‘(G) conversion from gravity or flood irri-
gation to low-flow sprinkler or drip irrigation
systems;
‘‘(H) intake screens, fish passages, and con-
version of diversions to pumps;
‘‘(I) alternate furrow wetting, irrigation
scheduling, and similar measures; and
‘‘(J) such other land-based irrigation effi-
ciency infrastructure and measures as the Sec-
retary determines to be appropriate to carry out
the program.
‘‘(g) COST SHARING.—
‘‘(1) IN GENERAL.—The share of the cost of con-
verting from production of a water-intensive crop to
a crop that requires less water, or of an irrigation ef-
ficiency infrastructure or measure assisted under sub-
section (f), that is not provided by this section—
‘‘(A) shall be not less than 25 percent; and
‘‘(B) shall be paid by—
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‘‘(i) a State;
‘‘(ii) an owner or operator of a farm
or ranch (including an Indian tribe); or
‘‘(iii) a nonprofit organization;
except that at least 10 percent of the share shall
be paid by the eligible entity.
‘‘(2) INCREASED SHARE.—If an owner or oper-
ator of a farm or ranch pays 50 percent or more of
the cost of converting from production of a water-in-
tensive crop to a crop that requires less water, or of
an irrigation efficiency infrastructure or measure, the
owner or operator shall retain the right to use 50 per-
cent of the water conserved by the conversion, infra-
structure, or measure.
‘‘(3) LEASING OF CONSERVED WATER.—A State
shall give an eligible entity with respect to land en-
rolled in the program the option of leasing, or pro-
viding a dry-year option on, conserved water for 30
years.
‘‘(4) WATER LEASE AND PURCHASE.—The cost of
water or water rights that are directly leased, pur-
chased, subject to a dry-year option, or dedicated
under this section shall not be subject to the cost-shar-
ing requirement of this subsection.
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‘‘(h) STATE PLAN APPROVAL.—In determining wheth-
er to approve a State plan under subsection (d)(3), the Sec-
retary shall consider the extent to which the State plan sig-
nificantly advances the goals of Federal, State, tribal, and
local fish, wildlife, and plant conservation plans,
including—
‘‘(1) plans that address—
‘‘(A) multiple endangered species or threat-
ened species (as defined in section 3 of the En-
dangered Species Act of 1973 (16 U.S.C. 1532));
or
‘‘(B) species that may become threatened or
endangered if conservation measures are not car-
ried out;
‘‘(2) agreements entered into, or conservation
plans submitted, under section 6 or 10(a)(2)(A), re-
spectively, of the Endangered Species Act of 1973 (16
U.S.C. 1535, 1539(a)(2)(A)); and
‘‘(3) plans that provide benefits to the fish, wild-
life, or plants located in 1 or more—
‘‘(A) refuges within the National Wildlife
Refuge System; or
‘‘(B) State wildlife management areas.
‘‘(i) STATE WATER LAW.—Nothing in this section—
‘‘(1) preempts any State water law;
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‘‘(2) affects any litigation concerning the right
or entitlement to, or lack of right or entitlement to,
water that is pending as of the date of enactment of
this section;
‘‘(3) expands, alters, or otherwise affects the ex-
istence or scope of any water right of any individual
(except to the extent that the individual agrees other-
wise under the program); or
‘‘(4) authorizes or entitles the Federal Govern-
ment to hold or purchase any water right.
‘‘(j) IMPLEMENTATION.—In carrying out this section,
the Secretary shall comply with—
‘‘(1) all interstate compacts, court decrees, and
Federal and State laws (including regulations) that
may affect water or water rights; and
‘‘(2) all procedural and substantive State water
law.
‘‘(k) CALIFORNIA WATER LAW.—
‘‘(1) IN GENERAL.—Nothing in this section au-
thorizes the Secretary to enter into an agreement, in
accordance with this section, with a landowner for
water obtained from an irrigation district, water dis-
trict, or other similar governmental entity in the
State of California.
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‘‘(2) DISTRICT PROGRAMS.—All landowners par-
ticipating in the program through membership in a
district or entity described in paragraph (1) shall be
willing participants in the program.
‘‘(l) GROUNDWATER.—A right to groundwater shall
not be subject to any provision of this section unless the
right is granted—
‘‘(1) under applicable State law; and
‘‘(2) through a groundwater water rights process
that is fully integrated with the surface water rights
process of the applicable affected State.
‘‘(m) PROHIBITION ON FEDERAL PURCHASE, LEASE,
AND RETENTION OF WATER RIGHTS.—No water rights
under this section shall be purchased, leased, or held by the
Secretary or any other officer or agent of the Federal Gov-
ernment.
‘‘(n) EXEMPTION FOR CERTAIN STATES.—This section
shall not apply to the States of Nebraska and North Dakota.
‘‘(o) FUNDING.—
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall make
available to carry out this section—
‘‘(A) $25,000,000 for fiscal year 2002;
‘‘(B) $52,000,000 for fiscal year 2003; and
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‘‘(C) $100,000,000 for each of fiscal years
2004 through 2006.
‘‘(2) LIMITATION ON EXPENDITURES.—For any
fiscal year, a State may expend not more than 75
percent of the funds made available to the State under
the program to pay—
‘‘(A) the cost of converting from production
of a water-intensive crop to a crop that requires
less water; or
‘‘(B) the cost of irrigation efficiency infra-
structure and measures under subsection (f)(1).
‘‘(3) MONITORING
PROGRAM.—For each fiscal
year, of the funds made available under paragraph
(1), the Secretary shall use not more than $5,000,000
to carry out the monitoring program under subsection
(e)(5).
‘‘(4) ADMINISTRATION.—
‘‘(A) FEDERAL.—For each fiscal year, of the
funds made available under paragraph (1), the
Secretary shall such sums as are necessary for
administration and technical assistance.
‘‘(B) STATE.—For each fiscal year, of the
funds made available under paragraph (1), not
more than 3 percent shall be made available to
States for administration of the program.
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‘‘(5) ELIGIBLE STATES.—Eligible States under
this program shall include only Nevada, California,
New Mexico, Oregon, Washington, Maine and New
Hampshire.’’.
(d) CONFORMING AMENDMENT.—Section 1231(b)(6) of
the Food Security Act of 1985 (16 U.S.C. 3831(b)(6)) (as
amended by section 212(b)(1)) is amended by striking sub-
paragraph (B) and inserting the following:
‘‘(B)(i) into the conservation reserve en-
hancement program described in a notice issued
on May 27, 1998 (63 Fed. Reg. 28965) (or a suc-
cessor program); or
‘‘(ii) under subsection (j).’’.
SEC. 216. RESOURCE CONSERVATION AND DEVELOPMENT
PROGRAM.
Subtitle H of title XV of the Agriculture and Food Act
of 1981 (16 U.S.C. 3451 et seq.) is amended to read as fol-
lows:
‘‘Subtitle H—Resource Conservation
and Development Program
‘‘SEC. 1528. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) AREA PLAN.—The term ‘area plan’ means
a resource conservation and use plan developed
through a planning process by a council for a des-
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ignated area of 1 or more States, or of land under the
jurisdiction of an Indian tribe, that includes 1 or
more of the following elements:
‘‘(A) A land conservation element, the pur-
pose of which is to control erosion and sedi-
mentation.
‘‘(B) A water management element that
provides 1 or more clear environmental or con-
servation benefits, the purpose of which is to pro-
vide for—
‘‘(i) the conservation, use, and quality
of water, including irrigation and rural
water supplies;
‘‘(ii) the mitigation of floods and high
water tables;
‘‘(iii) the repair and improvement of
reservoirs;
‘‘(iv) the improvement of agricultural
water management; and
‘‘(v) the improvement of water quality.
‘‘(C) A community development element, the
purpose of which is to improve—
‘‘(i) the development of resources-based
industries;
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‘‘(ii) the protection of rural industries
from natural resource hazards;
‘‘(iii) the development of adequate
rural water and waste disposal systems;
‘‘(iv) the improvement of recreation fa-
cilities;
‘‘(v) the improvement in the quality of
rural housing;
‘‘(vi) the provision of adequate health
and education facilities;
‘‘(vii) the satisfaction of essential
transportation and communication needs;
and
‘‘(viii) the promotion of food security,
economic development, and education.
‘‘(D) A land management element, the pur-
pose of which is—
‘‘(i) energy conservation, including the
production of energy crops;
‘‘(ii) the protection of agricultural
land, as appropriate, from conversion to
other uses;
‘‘(iii) farmland protection; and
‘‘(iv) the protection of fish and wildlife
habitats.
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‘‘(2) BOARD.—The term ‘Board’ means the Re-
source Conservation and Development Policy Advi-
sory Board established under section 1533(a).
‘‘(3) COUNCIL.—The term ‘council’ means a non-
profit entity (including an affiliate of the entity) op-
erating in a State that is—
‘‘(A) established by volunteers or representa-
tives of States, local units of government, Indian
tribes, or local nonprofit organizations to carry
out an area plan in a designated area; and
‘‘(B) designated by the chief executive officer
or legislature of the State to receive technical as-
sistance and financial assistance under this sub-
title.
‘‘(4) DESIGNATED AREA.—The term ‘designated
area’ means a geographic area designated by the Sec-
retary to receive technical assistance and financial
assistance under this subtitle.
‘‘(5) FINANCIAL ASSISTANCE.—The term ‘finan-
cial assistance’ means a grant or loan provided by the
Secretary (or the Secretary and other Federal agen-
cies) to, or a cooperative agreement entered into by
the Secretary (or the Secretary and other Federal
agencies) with, a council, or association of councils,
to carry out an area plan in a designated area, in-
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cluding assistance provided for planning, analysis,
feasibility studies, training, education, and other ac-
tivities necessary to carry out the area plan.
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term by section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
‘‘(7) LOCAL UNIT OF GOVERNMENT.—The term
‘local unit of government’ means—
‘‘(A) any county, city, town, township, par-
ish, village, or other general-purpose subdivision
of a State; and
‘‘(B) any local or regional special district
or other limited political subdivision of a State,
including any soil conservation district, school
district, park authority, and water or sanitary
district.
‘‘(8) 
NONPROFIT
ORGANIZATION.—The 
term
‘nonprofit organization’ means any organization that
is—
‘‘(A) described in section 501(c) of the In-
ternal Revenue Code of 1986; and
‘‘(B) exempt from taxation under section
501(a) of the Internal Revenue Code of 1986.
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‘‘(9) PLANNING PROCESS.—The term ‘planning
process’ means actions taken by a council to develop
and carry out an effective area plan in a designated
area, including development of the area plan, goals,
purposes, policies, implementation activities, evalua-
tions and reviews, and the opportunity for public
participation in the actions.
‘‘(10) PROJECT.—The term ‘project’ means a
project that is carried out by a council to achieve any
of the elements of an area plan.
‘‘(11) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture.
‘‘(12) STATE.—The term ‘State’ means—
‘‘(A) any State;
‘‘(B) the District of Columbia; or
‘‘(C) any territory or possession of the
United States.
‘‘(13) TECHNICAL ASSISTANCE.—The term ‘tech-
nical assistance’ means any service provided by the
Secretary or agent of the Secretary, including—
‘‘(A) inventorying, evaluating, planning,
designing, supervising, laying out, and inspect-
ing projects;
‘‘(B) providing maps, reports, and other
documents associated with the services provided;
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‘‘(C) providing assistance for the long-term
implementation of area plans; and
‘‘(D) providing services of an agency of the
Department of Agriculture to assist councils in
developing and carrying out area plans.
‘‘SEC. 1529. RESOURCE CONSERVATION AND DEVELOPMENT
PROGRAM.
‘‘The Secretary shall establish a resource conservation
and development program under which the Secretary shall
provide technical assistance and financial assistance to
councils to develop and carry out area plans and projects
in designated areas—
‘‘(1) to conserve and improve the use of land, de-
velop natural resources, and improve and enhance the
social, economic, and environmental conditions in
primarily rural areas of the United States; and
‘‘(2) to encourage and improve the capability of
State, units of government, Indian tribes, nonprofit
organizations, and councils to carry out the purposes
described in paragraph (1).
‘‘SEC. 1530. SELECTION OF DESIGNATED AREAS.
‘‘The Secretary shall select designated areas for assist-
ance under this subtitle on the basis of the elements of area
plans.
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‘‘SEC. 1531. POWERS OF THE SECRETARY.
‘‘In carrying out this subtitle, the Secretary may—
‘‘(1) provide technical assistance to any council
to assist in developing and implementing an area
plan for a designated area;
‘‘(2) cooperate with other departments and agen-
cies of the Federal Government, States, local units of
government, local Indian tribes, and local nonprofit
organizations in conducting surveys and inventories,
disseminating information, and developing area
plans;
‘‘(3) assist in carrying out an area plan ap-
proved by the Secretary for any designated area by
providing technical assistance and financial assist-
ance to any council; and
‘‘(4) enter into agreements with councils in ac-
cordance with section 1532.
‘‘SEC. 1532. ELIGIBILITY; TERMS AND CONDITIONS.
‘‘(a) ELIGIBILITY.—Technical assistance and financial
assistance may be provided by the Secretary under this sub-
title to any council to assist in carrying out a project speci-
fied in an area plan approved by the Secretary only if—
‘‘(1) the council agrees in writing—
‘‘(A) to carry out the project; and
‘‘(B) to finance or arrange for financing of
any portion of the cost of carrying out the
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project for which financial assistance is not pro-
vided by the Secretary under this subtitle;
‘‘(2) the project is included in an area plan and
is approved by the council;
‘‘(3) the Secretary determines that assistance is
necessary to carry out the area plan;
‘‘(4) the project provided for in the area plan is
consistent with any comprehensive plan for the area;
‘‘(5) the cost of the land or an interest in the
land acquired or to be acquired under the plan by
any State, local unit of government, Indian tribe, or
local nonprofit organization is borne by the State,
local unit of government, Indian tribe, or local non-
profit organization, respectively; and
‘‘(6) the State, local unit of government, Indian
tribe, or local nonprofit organization participating in
the area plan agrees to maintain and operate the
project.
‘‘(b) LOANS.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), a loan made under this subtitle shall be
made on such terms and conditions as the Secretary
may prescribe.
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‘‘(2) TERM.—A loan for a project made under
this subtitle shall have a term of not more than 30
years after the date of completion of the project.
‘‘(3) INTEREST RATE.—A loan made under this
subtitle shall bear interest at the average rate of inter-
est paid by the United States on obligations of a com-
parable term, as determined by the Secretary of the
Treasury.
‘‘(c) APPROVAL BY SECRETARY.—Technical assistance
and financial assistance under this subtitle may not be
made available to a council to carry out an area plan un-
less the area plan has been submitted to and approved by
the Secretary.
‘‘(d) WITHDRAWAL.—The Secretary may withdraw
technical assistance and financial assistance with respect
to any area plan if the Secretary determines that the assist-
ance is no longer necessary or that sufficient progress has
not been made toward developing or implementing the ele-
ments of the area plan.
‘‘(e) USE OF OTHER ENTITIES AND PERSONS.—A
council may use another person or entity to assist in devel-
oping and implementing an area plan and otherwise car-
rying out this subtitle.
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‘‘SEC. 1533. RESOURCE CONSERVATION AND DEVELOPMENT
POLICY ADVISORY BOARD.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
within the Department of Agriculture a Resource Conserva-
tion and Development Policy Advisory Board.
‘‘(b) COMPOSITION.—
‘‘(1) IN GENERAL.—The Board shall be composed
of at least 7 employees of the Department of Agri-
culture selected by the Secretary.
‘‘(2) CHAIRPERSON.—A member of the Board
shall be designated by the Secretary to serve as chair-
person of the Board.
‘‘(c) DUTIES.—The Board shall advise the Secretary
regarding the administration of this subtitle, including the
formulation of policies for carrying out this subtitle.
‘‘SEC. 1534. EVALUATION OF PROGRAM.
‘‘(a) IN GENERAL.—The Secretary, in consultation
with councils, shall evaluate the program established under
this subtitle to determine whether the program is effectively
meeting the needs of, and the purposes identified by, States,
units of government, Indian tribes, nonprofit organizations,
and councils participating in, or served by, the program.
‘‘(b) REPORT.—Not later than June 30, 2005, the Sec-
retary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report de-
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scribing the results of the evaluation, together with any rec-
ommendations of the Secretary for continuing, terminating,
or modifying the program.
‘‘SEC. 1535. LIMITATION ON ASSISTANCE.
‘‘In carrying out this subtitle, the Secretary shall pro-
vide technical assistance and financial assistance with re-
spect to not more than 450 active designated areas.
‘‘SEC. 1536. SUPPLEMENTAL AUTHORITY OF THE SEC-
RETARY.
‘‘The authority of the Secretary under this subtitle to
assist councils in the development and implementation of
area plans shall be supplemental to, and not in lieu of, any
authority of the Secretary under any other provision of law.
‘‘SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be such
sums as are necessary to carry out this subtitle.
‘‘(b) LOANS.—The Secretary shall not use more than
$15,000,000 of any funds made available for a fiscal year
to make loans under this subtitle.
‘‘(c) AVAILABILITY.—Funds appropriated to carry out
this subtitle shall remain available until expended.’’.
SEC. 217. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) IN GENERAL.—Chapter 5 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.)
is amended to read as follows:
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‘‘CHAPTER 5—OTHER CONSERVATION
PROGRAMS
‘‘SEC. 1240M. WILDLIFE HABITAT INCENTIVE PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ENDANGERED SPECIES.—The term ‘endan-
gered species’ has the meaning given the term in sec-
tion 3 of the Endangered Species Act of 1973 (16
U.S.C. 1532).
‘‘(2) PROGRAM.—The term ‘program’ means the
wildlife habitat incentive program established under
subsection (b).
‘‘(3) SENSITIVE
SPECIES.—The term ‘sensitive
species’ has the meaning given the term ‘candidate
species’ within the meaning of section 424.02(b) of
title 50, Code of Federal Regulations (or a successor
regulation) or a species which may become threatened
or endangered if conservation actions are not taken to
conserve that species.
‘‘(4) THREATENED SPECIES.—The term ‘threat-
ened species’ has the meaning given the term in sec-
tion 3 of the Endangered Species Act of 1973 (16
U.S.C. 1532).
‘‘(b) ESTABLISHMENT.—In consultation with the State
technical committees established under section 1261 of the
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Food Security Act of 1985 (16 U.S.C. 3861), the Secretary
shall establish the wildlife habitat incentive program.
‘‘(c) COST-SHARE PAYMENTS.—
‘‘(1) IN GENERAL.—Under the program, the Sec-
retary shall make cost-share payments, and provide
technical assistance, to landowners of eligible land to
develop and enhance wildlife habitat (including
aquatic habitat) approved by the Secretary.
‘‘(2) ENDANGERED
AND
THREATENED
SPE-
CIES.—Of the funds made available to carry out this
subsection, the Secretary shall use at least 15 percent
to make cost-share payments to carry out projects and
activities relating to endangered species, threatened
species, and sensitive species.
‘‘(d) PILOT PROGRAM FOR ESSENTIAL PLANT AND
ANIMAL HABITAT.—Under the program, the Secretary may
establish procedures to use not more than 15 percent of
funds made available to acquire and enroll eligible land for
periods of at least 15 years to protect and restore essential
(as determined by the Secretary) plant and animal habitat.
‘‘(e) ELIGIBLE PARTIES.—After consulting, to the
maximum extent practicable, with State wildlife officials,
the Secretary may provide grants under this section to indi-
viduals and nonprofit organizations that lease public land.
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‘‘(f) NEXUS TO PRIVATE LAND.—Funds from a grant
provided under subsection (e) may be used, as determined
by the Secretary, for a purpose on public land if the purpose
benefits private land.
‘‘(g) FUNDING.—Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this sec-
tion (including the provision of technical assistance), to re-
main available until expended—
‘‘(1) $50,000,000 for fiscal year 2002;
‘‘(2) $225,000,000 for fiscal year 2003;
‘‘(3) $275,000,000 for fiscal year 2004;
‘‘(4) $325,000,000 for fiscal years 2005;
‘‘(5) $355,000,000 for fiscal year 2006; and
‘‘(6) $50,000,000 for fiscal year 2007.’’.
‘‘SEC. 1240N. WATERSHED RISK REDUCTION.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Natural Resources Conservation Service (referred to in this
section as the ‘Secretary’), in cooperation with landowners
and land users, may carry out such projects and activities
(including the purchase of floodplain easements for runoff
retardation and soil erosion prevention) as the Secretary
determines to be necessary to safeguard lives and property
from floods, drought, and the products of erosion on any
watershed in any case in which fire, flood, or any other
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natural occurrence has caused, is causing, or may cause
a sudden impairment of that watershed.
‘‘(b) PRIORITY.—In carrying out this section, the Sec-
retary shall give priority to any project or activity de-
scribed in subsection (a) that is carried out on a floodplain
adjacent to a major river, as determined by the Secretary.
‘‘(c) PROHIBITION
ON
DUPLICATIVE
FUNDS.—No
project or activity under subsection (a) that is carried out
using funds made available under this section may be car-
ried out using funds made available under any Federal dis-
aster relief program administered by the Secretary relating
to floods.
‘‘(d) FUNDING.—There is authorized to be appro-
priated to carry out this section $15,000,000 for each of
fiscal years 2002 through 2006.
‘‘SEC. 1240O. GREAT LAKES BASIN PROGRAM FOR SOIL ERO-
SION AND SEDIMENT CONTROL.
‘‘(a) IN GENERAL.—The Secretary, in consultation
with the Great Lakes Commission created by Article IV of
the Great Lakes Basin Compact (82 Stat. 415) and in co-
operation with the Administrator of the Environmental
Protection Agency and the Secretary of the Army, may
carry out the Great Lakes basin program for soil erosion
and sediment control (referred to in this section as the ‘pro-
gram’).
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‘‘(b) ASSISTANCE.—In carrying out the program, the
Secretary may—
‘‘(1) provide project demonstration grants, pro-
vide technical assistance, and carry out information
and education programs to improve water quality in
the Great Lakes basin by reducing soil erosion and
improving sediment control; and
‘‘(2) provide a priority for projects and activities
that directly reduce soil erosion or improve sediment
control.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,000,000 for each of fiscal years 2002 through 2006.
‘‘SEC. 1240P. CONSERVATION OF PRIVATE GRAZING LAND.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) private grazing land constitutes nearly 1⁄2
of the non-Federal land of the United States and is
basic to the environmental, social, and economic sta-
bility of rural communities;
‘‘(2) private grazing land contains a complex set
of interactions among soil, water, air, plants, and
animals;
‘‘(3) grazing land constitutes the single largest
watershed cover type in the United States and con-
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tributes significantly to the quality and quantity of
water available for all of the many uses of the land;
‘‘(4) private grazing land constitutes the most
extensive wildlife habitat in the United States;
‘‘(5) private grazing land can provide opportu-
nities for improved nutrient management from land
application of animal manures and other by-product
nutrient resources;
‘‘(6) landowners and managers of private graz-
ing land need to continue to recognize conservation
problems when the problems arise and receive sound
technical assistance to improve or conserve grazing
land resources to meet ecological and economic de-
mands;
‘‘(7) new science and technology must contin-
ually be made available in a practical manner so
owners and managers of private grazing land may
make informed decisions concerning vital grazing
land resources;
‘‘(8) agencies of the Department with private
grazing land responsibilities are the agencies that
have the expertise and experience to provide technical
assistance, education, and research to owners and
managers of private grazing land for the long-term
productivity and ecological health of grazing land;
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‘‘(9) although competing demands on private
grazing land resources are greater than ever before,
assistance to private owners and managers of private
grazing land is limited and does not meet the demand
and basic need for adequately sustaining or enhanc-
ing the private grazing land resources; and
‘‘(10) private grazing land can be enhanced to
provide many benefits to all citizens of the United
States through voluntary cooperation among owners
and managers of the land, local conservation districts,
and the agencies of the Department responsible for
providing assistance to owners and managers of land
and to conservation districts.
‘‘(b) PURPOSE.—The purpose of this section is to au-
thorize the Secretary to provide a coordinated technical,
educational, and related assistance program to conserve and
enhance private grazing land resources and provide related
benefits to all citizens of the United States by—
‘‘(1) establishing a coordinated and cooperative
Federal, State, tribal, and local grazing conservation
program for management of private grazing land;
‘‘(2) strengthening technical, educational, and re-
lated assistance programs that provide assistance to
owners and managers of private grazing land;
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‘‘(3) conserving and improving wildlife habitat
on private grazing land;
‘‘(4) conserving and improving fish habitat and
aquatic systems through grazing land conservation
treatment;
‘‘(5) protecting and improving water quality;
‘‘(6) improving the dependability and consist-
ency of water supplies;
‘‘(7) identifying and managing weed, noxious
weed, and brush encroachment problems on private
grazing land; and
‘‘(8) integrating conservation planning and
management decisions by owners and managers of
private grazing land, on a voluntary basis.
‘‘(c) DEFINITION OF PRIVATE GRAZING LAND.—In
this section, the term ‘private grazing land land’ means
rangeland, pastureland, grazed forest land, hay land, and
any other non-federally owned land that is—
‘‘(1) private;
‘‘(2) owned by a State; or
‘‘(3) under the jurisdiction of an Indian tribe .
‘‘(d) PRIVATE GRAZING LAND CONSERVATION ASSIST-
ANCE.—
‘‘(1) IN GENERAL.—Subject to the availability of
appropriations for this section, the Secretary shall es-
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tablish a voluntary program to provide technical,
educational, and related assistance to owners and
managers of private grazing land and public agen-
cies, through local conservation districts, to enable the
landowners, managers, and public agencies to volun-
tarily carry out activities that are consistent with
this section, including—
‘‘(A) maintaining and improving private
grazing land and the multiple values and uses
that depend on private grazing land;
‘‘(B) implementing grazing land manage-
ment technologies;
‘‘(C) managing resources on private grazing
land, including—
‘‘(i) planning, managing, and treating
private grazing land resources;
‘‘(ii) ensuring the long-term sustain-
ability of private grazing land resources;
‘‘(iii) harvesting, processing, and mar-
keting private grazing land resources; and
‘‘(iv) identifying and managing weed,
noxious weed, and brush encroachment
problems;
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‘‘(D) protecting and improving the quality
and quantity of water yields from private graz-
ing land;
‘‘(E) maintaining and improving wildlife
and fish habitat on private grazing land;
‘‘(F) enhancing recreational opportunities
on private grazing land;
‘‘(G) maintaining and improving the aes-
thetic character of private grazing land; and
‘‘(H) identifying the opportunities and en-
couraging the diversification of private grazing
land enterprises.
‘‘(2) PROGRAM ELEMENTS.—
‘‘(A) FUNDING.—Funds may be used to
carry out this section only if the funds are pro-
vided through a specific line-item in the annual
appropriations for the Natural Resources Con-
servation Service.
‘‘(B) TECHNICAL
ASSISTANCE
AND
EDU-
CATION.—Personnel of the Department of Agri-
culture trained in pasture and range manage-
ment shall be made available under the program
to deliver and coordinate technical assistance
and education to owners and managers of pri-
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vate grazing land, at the request of the owners
and managers.
‘‘(e) GRAZING TECHNICAL ASSISTANCE SELF-HELP.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) there is a severe lack of technical as-
sistance for farmers and ranchers that graze live-
stock;
‘‘(B) Federal budgetary constraints preclude
any significant expansion, and may force a re-
duction of, levels of technical support; and
‘‘(C) farmers and ranchers have a history of
cooperatively working together to address com-
mon needs in the promotion of their products
and in the drainage of wet areas through drain-
age districts.
‘‘(2) ESTABLISHMENT OF GRAZING DEMONSTRA-
TION DISTRICTS.—In accordance with paragraph (3),
the Secretary may establish 2 grazing management
demonstration districts on the recommendation of the
grazing land conservation initiative steering com-
mittee.
‘‘(3) PROCEDURE.—
‘‘(A) PROPOSAL.—Within a reasonable time
after the submission of a proposal of an organi-
zation of farmers or ranchers engaged in grazing
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in a district, subject to subparagraphs (B)
through (F), the Secretary establish a grazing
management district in accordance with the pro-
posal.
‘‘(B) FUNDING.—The terms and conditions
of the funding and operation of the grazing man-
agement district shall be proposed by the farmers
and ranchers engaged in grazing in the district.
‘‘(C) APPROVAL.—The Secretary shall ap-
prove the proposal if the Secretary determines
that the proposal—
‘‘(i) is reasonable;
‘‘(ii) will promote sound grazing prac-
tices; and
‘‘(iii) contains provisions similar to
the provisions contained in the beef pro-
motion and research order issued under sec-
tion 4 of the Beef Research and Information
Act (7 U.S.C. 2903) in effect on April 4,
1996.
‘‘(D) AREA INCLUDED.—The area proposed
to be included in a grazing management district
shall be determined by the Secretary on the basis
of the proposal submitted by farmers or ranchers
under subparagraph (A).
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‘‘(E) AUTHORIZATION.—The Secretary may
use authority under the Agricultural Adjustment
Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing
Agreement Act of 1937, to operate, on a dem-
onstration basis, a grazing management district.
‘‘(F) ACTIVITIES.—The activities of a graz-
ing management district shall be scientifically
sound activities, as determined by the Secretary
in consultation with a technical advisory com-
mittee composed of farmers, ranchers, and tech-
nical experts.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$60,000,000 for each of fiscal years 2002 through 2006.
‘‘SEC. 1240Q. GRASSROOTS SOURCE WATER PROTECTION
PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish a na-
tional grassroots water protection program to more effec-
tively use onsite technical assistance capabilities of each
State rural water association that, as of the date of enact-
ment of this section, operates a wellhead or groundwater
protection program in the State.
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‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,000,000 for each of fiscal years 2002 through 2006.’’.
(b) CONFORMING AMENDMENT.—Section 386 of the
Federal Agriculture Improvement and Reform Act of 1996
(16 U.S.C. 2005b) is repealed.
SEC. 218. FARMLAND PROTECTION PROGRAM.
(a) IN GENERAL.—Chapter 2 of the Food Security Act
of 1985 (as added by section 201) is amended by adding
at the end the following:
‘‘Subchapter B—Farmland Protection
Program
‘‘SEC. 1238H. DEFINITIONS.
‘‘In this subchapter:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) any agency of any State or local gov-
ernment or an Indian tribe (including a farm-
land protection board or land resource council
established under State law); or
‘‘(B) any organization that—
‘‘(i) is organized for, and at all times
since the formation of the organization has
been operated principally for, 1 or more of
the conservation purposes specified in clause
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(i), (ii), or (iii) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
‘‘(ii) is an organization described in
section 501(c)(3) of that Code that is ex-
empt from taxation under section 501(a) of
that Code;
‘‘(iii) is described in section 509(a)(2)
of that Code; or
‘‘(iv) is described in section 509(a)(3),
and is controlled by an organization de-
scribed in section 509(a)(2), of that Code.
‘‘(2) ELIGIBLE LAND.—
‘‘(A) IN GENERAL.—The term ‘eligible land’
means land on a farm or ranch that—
‘‘(i)(I) has prime, unique, or other pro-
ductive soil; or
‘‘(II) contains historical or archae-
ological resources; and
‘‘(ii) is subject to a pending offer for
purchase from an eligible entity.
‘‘(B) INCLUSIONS.—The term ‘eligible land’
includes, on a farm or ranch—
‘‘(i) cropland;
‘‘(ii) rangeland;
‘‘(iii) grassland;
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‘‘(iv) pasture land; and
‘‘(v) forest land that is part of an agri-
cultural operation, as determined by the
Secretary.
‘‘(3) 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).
‘‘(4) PROGRAM.—The term ‘program’ means the
farmland protection program established under sec-
tion 1238I(a).
‘‘SEC. 1238I. FARMLAND PROTECTION.
‘‘(a) IN GENERAL.—The Secretary, acting through the
Natural Resources Conservation Service, shall establish and
carry out a farmland protection program under which the
Secretary shall purchase conservation easements or other
interests in eligible land that is subject to a pending offer
from an eligible entity for the purpose of protecting topsoil
by limiting nonagricultural uses of the land.
‘‘(b) CONSERVATION PLAN.—Any highly erodible crop-
land for which a conservation easement or other interest
is purchased under this subchapter shall be subject to the
requirements of a conservation plan that requires, at the
option of the Secretary, the conversion of the cropland to
less intensive uses.
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‘‘SEC. 1238J. MARKET VIABILITY PROGRAM.
‘‘For each year for which funds are made available to
carry out this subchapter, the Secretary may use not more
than $10,000,000 to provide matching market viability
grants and technical assistance to farm and ranch operators
that participate in the program.’’.
(b) FUNDING.—Section 1241 of the Food Security Act
of 1985 (16 U.S.C. 3841) (as amended by section 202) is
amended by adding at the end the following:
‘‘(d) FARMLAND PROTECTION PROGRAM.—
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use to
carry out subchapter B of chapter 2 (including the
provision of technical assistance), to remain available
until expended—
‘‘(A) $150,000,000 in fiscal year 2002;
‘‘(B) $250,000,000 in fiscal year 2003;
‘‘(C) $400,000,000 in fiscal year 2004;
‘‘(D) $450,000,000 in fiscal year 2005;
‘‘(E) $500,000,000 in fiscal year 2006; and
‘‘(F) $100,000,000 in fiscal year 2007.
‘‘(2) COST SHARING.—
‘‘(A) FARMLAND PROTECTION.—
‘‘(i) SHARE
PROVIDED
UNDER
THIS
SUBSECTION.—The share of the cost of pur-
chasing a conservation easement or other
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interest in eligible land described in section
1238I(a) provided under this subsection
shall not exceed 50 percent of the appraised
fair market value of the conservation ease-
ment or other interest in eligible land.
‘‘(ii) SHARE
NOT
PROVIDED
UNDER
THIS SUBSECTION.—As part of the share of
the cost of purchasing a conservation ease-
ment or other interest in eligible land de-
scribed in section 1238I(a) that is not pro-
vided under this subsection, an eligible enti-
ty may include a charitable donation by the
private landowner from which the eligible
land is to be purchased of not more than 25
percent of the fair market value of the con-
servation easement or other interest in eligi-
ble land.
‘‘(iii) BIDDING
DOWN.—If the Sec-
retary determines that 2 or more applica-
tions for the purchase of a conservation
easement or other interest in eligible land
described in section 1238I(a) are com-
parable in achieving the purposes of section
1238I, the Secretary shall not assign a
higher priority to any 1 of those applica-
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tions solely on the basis of lesser cost to the
farmland protection program established
under section 1238I(a).
‘‘(B) MARKET VIABILITY CONTRIBUTIONS.—
As a condition of receiving a grant under section
1238J, a grantee shall provide funds in an
amount equal to the amount of the grant.’’.
(c) CONFORMING AMENDMENT.—
(1) IN GENERAL.—Section 388 of the Federal
Agriculture Improvement and Reform Act of 1996 (16
U.S.C. 3830 note) is repealed.
(2) EFFECT
ON
CONTRACTS.—The amendment
made by paragraph (1) shall have no effect on any
contract entered into under section 388 of the Federal
Agriculture Improvement and Reform Act of 1996 (16
U.S.C. 3830 note) that is in effect as of the date of
enactment of this Act.
SEC. 219. GRASSLAND RESERVE PROGRAM.
Chapter 2 of the Food Security Act of 1985 (as amend-
ed by section 218) is amended by adding at the end the
following:
‘‘Subchapter C—Grassland Reserve Program
‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary, acting through
the Natural Resource Conservation Service, shall establish
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a grassland reserve program (referred to in this subchapter
as the ‘program’) to assist owners in restoring and pro-
tecting eligible land described in subsection (c).
‘‘(b) ENROLLMENT CONDITIONS.—
‘‘(1) IN GENERAL.—The Secretary shall enroll in
the program, from willing owners, not less than—
‘‘(A) 100 contiguous acres of land west of
the 98th meridian; or
‘‘(B) except as provided in paragraph (2),
40 contiguous acres of land east of the 98th me-
ridian.
‘‘(2) MAXIMUM ENROLLMENT.—The total number
of acres enrolled in the program shall not exceed
2,000,000 acres, of which not more than 500,000 acres
shall be available for enrollment of tracts of native
grassland of 40 acres or less that are located east of
the 98th meridian.
‘‘(3) METHODS OF ENROLLMENT.—The Secretary
shall enroll land in the program through—
‘‘(A) permanent easements or 30-year ease-
ments;
‘‘(B) in a State that imposes a maximum
duration for such an easement, an easement for
the maximum duration allowed under State law;
or
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‘‘(C) a 30-year rental agreement.
‘‘(c) ELIGIBLE LAND.—Land shall be eligible to be en-
rolled in the program if the Secretary determines that the
land is private land that is—
‘‘(1) natural grassland (including prairie and
land that contains shrubs or forb) that is indigenous
to the locality;
‘‘(2) land that—
‘‘(A) is located in an area that has been his-
torically dominated by natural grassland; and
‘‘(B) has potential to serve as habitat for
animal or plant populations of significant eco-
logical value if the land is restored to a natural
condition; or
‘‘(3) land that is incidental to land described in
paragraph (1) or (2), if the incidental land is deter-
mined by the Secretary to be necessary for the effi-
cient administration of an easement.
‘‘SEC. 1238O. EASEMENTS AND AGREEMENTS.
‘‘(a) IN GENERAL.—To be eligible to enroll land in the
program, the owner of the land shall enter into an agree-
ment with the Secretary—
‘‘(1) if the agreement is for an easement—
‘‘(A) to grant an easement that applies to
the land to the Secretary;
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‘‘(B) to create and record an appropriate deed
restriction in accordance with applicable State law to
reflect the easement;
‘‘(C) to provide a written statement of con-
sent to the easement signed by persons holding a
security interest or any vested interest in the
land;
‘‘(D) to provide proof of unencumbered title
to the underlying fee interest in the land that is
the subject of the easement; and
‘‘(E) to comply with the terms of the ease-
ment and restoration agreement; and
‘‘(2) if the agreement is for a rental agreement
described in section 1238N(b)(3)(C), that specifies the
terms and conditions applicable to—
‘‘(A) the Secretary; and
‘‘(B) the owner of the land.
‘‘(b) TERMS
OF EASEMENT
OF RENTAL AGREE-
MENT.—An easement or rental agreement under subsection
(a) shall—
‘‘(1) permit—
‘‘(A) grazing on the land in a manner that
is consistent with maintaining the viability of
natural grass, shrub, forb, and wildlife species
indigenous to that locality;
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‘‘(B) haying (including haying for seed pro-
duction) or mowing, except during the nesting
and brood-rearing seasons for birds in the area
that are in significant decline, as determined by
the Natural Resources Conservation Service
State conservationist, or are protected Federal or
State law; and
‘‘(C) fire rehabilitation, construction of fire
breaks, and fences (including placement of the
posts necessary for fences);
‘‘(2) prohibit—
‘‘(A) the production of row crops, fruit
trees, vineyards, or any other agricultural com-
modity that requires breaking the soil surface;
and
‘‘(B) except as permitted under paragraph
(1)(C), the conduct of any other activities that
would disturb the surface of the land covered by
the easement, including—
‘‘(i) plowing; and
‘‘(ii) disking; and
‘‘(3) include such additional provisions as the
Secretary determines are appropriate to carry out
this subchapter or to facilitate the administration of
this subchapter.
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‘‘(c) EVALUATION AND RANKING OF EASEMENT AND
RENTAL AGREEMENT APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in conjunc-
tion with State technical committees, shall establish
criteria to evaluate and rank applications for ease-
ments and rental agreements under this subchapter.
‘‘(2) CRITERIA.—In establishing the criteria, the
Secretary shall emphasize support for grazing oper-
ations, plant and animal biodiversity, and grassland
and land containing shrubs or forb under the greatest
threat of conversion.
‘‘(d) RESTORATION AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall prescribe
the terms of a restoration agreement by which grass-
land and shrubland subject to an easement or rental
agreement entered into under the program shall be re-
stored.
‘‘(2) REQUIREMENTS.—The restoration agree-
ment shall describe the respective duties of the owner
and the Secretary (including paying the share of the
cost of restoration provided by the Secretary and the
provision of technical assistance).
‘‘(e) VIOLATIONS.—
‘‘(1) IN GENERAL.—On the violation of the terms
or conditions of an easement, rental agreement, or
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restoration 
agreement 
entered 
into 
under 
this
section—
‘‘(A) the easement or rental agreement shall
remain in force; and
‘‘(B) the Secretary may require the owner
to refund all or part of any payments received
by the owner under this subchapter, with interest
on the payments as determined appropriate by
the Secretary.
‘‘(2) PERIODIC INSPECTIONS.—
‘‘(A) IN GENERAL.—After providing notice
to the owner, the Secretary shall conduct peri-
odic inspections of land subject to easements and
rental agreements under this subchapter to en-
sure compliance with the terms of the easement,
rental agreement, and applicable restoration
agreement.
‘‘(B) LIMITATION.—The Secretary may not
prohibit the owner, or a representative of the
owner, from being present during a periodic in-
spection.
‘‘SEC. 1238P. DUTIES OF SECRETARY.
‘‘(a) IN GENERAL.—In return for the granting of an
easement, or the execution of a rental agreement, by an
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owner under this subchapter, the Secretary shall, in accord-
ance with this section—
‘‘(1) make easement or rental agreement pay-
ments;
‘‘(2) pay a share of the cost of restoration; and
‘‘(3) provide technical assistance to the owner.
‘‘(b) PAYMENT SCHEDULE.—
‘‘(1) EASEMENT PAYMENTS.—
‘‘(A) AMOUNT.—In return for the granting
of an easement by an owner under this sub-
chapter, the Secretary shall make easement pay-
ments to the owner in an amount equal to—
‘‘(i) in the case of a permanent ease-
ment, the fair market value of the land less
the grazing value of the land encumbered by
the easement; and
‘‘(ii) in the case of a 30-year easement
or an easement for the maximum duration
allowed under applicable State law, 30 per-
cent of the fair market value of the land less
the grazing value of the land for the period
during which the land is encumbered by the
easement.
‘‘(B) 
SCHEDULE.—Easement 
payments
may be provided in not less than 1 payment nor
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more than 10 annual payments of equal or un-
equal amount, as agreed to by the Secretary and
the owner.
‘‘(2) RENTAL AGREEMENT PAYMENTS.—
‘‘(A) AMOUNT.—If an owner enters into a
30-year rental agreement authorized under sec-
tion 1238N(b)(3)(C), the Secretary shall make 30
annual rental payments to the owner in an
amount that equals, to the maximum extent
practicable, the 30-year easement payment
amount under paragraph (1)(A)(ii).
‘‘(B) ASSESSMENT.—Not less than once
every 5 years throughout the 30-year rental pe-
riod, the Secretary shall assess whether the value
of the rental payments under subparagraph (A)
equals, to the maximum extent practicable, the
total amount of 30-year easement payments as of
the date of the assessment.
‘‘(C) ADJUSTMENT.—If on completion of the
assessment under subparagraph (B), the Sec-
retary determines that the rental payments do
not equal, to the maximum extent practicable,
the value of payments under a 30-year easement,
the Secretary shall adjust the amount of the re-
maining payments to equal, to the maximum ex-
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tent practicable, the value of a 30-year easement
over the entire 30-year rental period.
‘‘(c) COST
OF RESTORATION.—The Secretary shall
make payments to the owner of not more than 75 percent
of the cost of carrying out measures and practices necessary
to restore grassland and shrubland functions and values.
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall
provide owners with technical assistance to execute ease-
ment documents and restore the grassland and shrubland.
‘‘(e) PAYMENTS TO OTHERS.—If an owner that is enti-
tled to a payment under this subchapter dies, becomes in-
competent, is otherwise unable to receive the payment, or
is succeeded by another person who renders or completes the
required performance, the Secretary shall make the pay-
ment, in accordance with regulations promulgated by the
Secretary and without regard to any other provision of law,
in such manner as the Secretary determines is fair and rea-
sonable in light of all the circumstances.
‘‘(f) OTHER PAYMENTS.—Easement or rental agree-
ment payments received by an owner under this subchapter
shall be in addition to, and not affect, the total amount
of payments that the owner is otherwise eligible to receive
under other Federal laws (except for funds provided to
achieve similar purposes).
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‘‘(g) REGULATIONS.—Not later than 180 days after the
date of enactment of this subchapter, the Secretary shall
promulgate such regulations as are necessary to carry out
this subchapter.
‘‘SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.
‘‘(a) IN GENERAL.—The Secretary may permit a pri-
vate conservation or land trust organization (referred to in
this section as a ‘private organization’) or a State agency
to hold and enforce an easement under this subchapter, in
lieu of the Secretary, subject to the right of the Secretary
to conduct periodic inspections and enforce the easement,
if—
‘‘(1) the Secretary determines that granting the
permission will promote grassland and shrubland
protection;
‘‘(2) the owner authorizes the private organiza-
tion or State agency to hold and enforce the easement;
and
‘‘(3) the private organization or State agency
agrees to assume the costs incurred in administering
and enforcing the easement, including the costs of res-
toration or rehabilitation of the land as specified by
the owner and the private organization or State agen-
cy.
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‘‘(b) APPLICATION.—A private organization or State
agency that seeks to hold and enforce an easement under
this subchapter shall apply to the Secretary for approval.
‘‘(c) APPROVAL BY SECRETARY.—The Secretary may
approve a private organization to hold and enforce an ease-
ment under this subchapter if (as determined by the Sec-
retary) the private organization—
‘‘(1)(A) is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 that
is exempt from taxation under section 501(a) of that
Code; or
‘‘(B) is described in section 509(a)(3), and is
controlled by an organization described in section
509(a)(2), of that Code;
‘‘(2) has the relevant experience necessary to ad-
minister grassland and shrubland easements;
‘‘(3) has a charter that describes the commitment
of the private organization to conserving ranchland,
agricultural land, or grassland for grazing and con-
servation purposes; and
‘‘(4) has the resources necessary to effectuate the
purposes of the charter.
‘‘(d) REASSIGNMENT.—
‘‘(1) IN
GENERAL.—If a private organization
holding an easement on land under this subchapter
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terminates, not later than 30 days after termination
of the private organization, the owner of the land
shall reassign the easement to—
‘‘(A) a new private organization that is ap-
proved by the Secretary; or
‘‘(B) the Secretary.
‘‘(2) NOTIFICATION OF SECRETARY.—
‘‘(A) IN GENERAL.—If the easement is reas-
signed to a new private organization, not later
than 60 days after the date of reassignment, the
owner and the new organization shall notify the
Secretary in writing that a reassignment for ter-
mination has been made.
‘‘(B) FAILURE
TO
NOTIFY.—If the owner
and the new organization fail to notify the Sec-
retary of the reassignment in accordance with
subparagraph (A), the easement shall revert to
the control of the Secretary.’’.
(b) FUNDING.—Section 1241 of the Food Security Act
of 1985 (16 U.S.C. 3841) (as amended by section 218(b))
is amended by adding at the end the following:
‘‘(e) GRASSLAND RESERVE PROGRAM.—The Secretary
shall use such sums of the Commodity Credit Corporation
as are necessary to carry out subchapter C of chapter 2
(including the provision of technical assistance).’’.
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SEC. 220. STATE TECHNICAL COMMITTEES.
Subtitle G of title XII of the Food Security Act of 1985
(16 U.S.C. 3861 et seq.) is amended to read as follows:
‘‘Subtitle G—State Technical
Committees
‘‘SEC. 1261. ESTABLISHMENT.
‘‘(a) IN GENERAL.—The Secretary shall establish in
each State a technical committee to assist the Secretary in
the technical considerations relating to implementation of
any private land conservation program administered by the
Secretary.
‘‘(b) STANDARDS.—Not later than 180 days after the
date of enactment of the Agriculture, Conservation, and
Rural Enhancement Act of 2002, the Secretary shall develop
standards to be used by each State technical committee in
the development of technical guidelines under section
1262(b) for the implementation of the conservation pro-
grams under this title.
‘‘(c) COMPOSITION.—Each State technical committee
established under subsection (a) shall be composed of profes-
sional resource managers that represent a variety of dis-
ciplines in the soil, water, wetland, forest, and wildlife
sciences, including representatives from among—
‘‘(1) the Natural Resources Conservation Service
(a representative of which shall serve as Chair of the
Committee);
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‘‘(2) the Farm Service Agency;
‘‘(3) the Forest Service;
‘‘(4) the Extension Service;
‘‘(5) the Fish and Wildlife Service;
‘‘(6) such State departments and agencies as the
Secretary determines to be appropriate, including—
‘‘(A) a State fish and wildlife agency;
‘‘(B) a State forester or equivalent State of-
ficial;
‘‘(C) a State water resources agency;
‘‘(D) a State department of agriculture;
‘‘(E) a State soil conservation agency;
‘‘(F) a State association of soil and water
conservation districts; and
‘‘(G) land grant colleges and universities;
‘‘(7) other individuals or agency personnel with
expertise in soil, water, wetland, and wildlife or forest
management as the Secretary determines to be appro-
priate;
‘‘(8) agricultural producers with demonstrable
conservation expertise;
‘‘(9) nonprofit organizations with demonstrable
conservation or forestry expertise;
‘‘(10) persons knowledgeable about conservation
or forestry techniques; and
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‘‘(11) agribusinesses.
‘‘SEC. 1262. RESPONSIBILITIES.
‘‘(a) INFORMATION.—
‘‘(1) PROVISION.—
‘‘(A) IN
GENERAL.—Each State technical
committee established under section 1261 shall
meet regularly to provide information, analyses,
and recommendations to the Secretary.
‘‘(B) MANNER; FORM.—Information, anal-
yses, and recommendations described in subpara-
graph (A) shall—
‘‘(i) be provided in writing, in a man-
ner that assists the Secretary in deter-
mining matters of fact, technical merit, or
scientific question; and
‘‘(ii) reflect the best professional infor-
mation and judgment of the committee.
‘‘(2) COORDINATION.—The Secretary shall co-
ordinate activities conducted under this section with
activities conducted under section 1628 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5831).
‘‘(3) PUBLIC PARTICIPATION.—Each State tech-
nical committee shall—
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‘‘(A) provide public notice of, and permit
public attendance at, meetings considering issues
of concern related to any program under this
title; and
‘‘(B) distribute meeting minutes to each
person attending a meeting described in sub-
paragraph (A).
‘‘(4) COMMUNICATION.—Each State conserva-
tionist shall communicate regularly with members of
the State technical committee concerning status of ac-
tion on recommendations of the committee.
‘‘(b) OTHER DUTIES.—Each State technical committee
shall provide assistance and offer recommendations with re-
spect to the technical aspects of—
‘‘(1) wetland protection, restoration, and mitiga-
tion requirements;
‘‘(2) criteria to be used in evaluating bids for en-
rollment of environmentally-sensitive land in the con-
servation reserve program established under sub-
chapter B of chapter 1;
‘‘(3) guidelines for haying or grazing and the
control of weeds to protect nesting wildlife on des-
ignated acreage relating to—
‘‘(A) highly erodible land conservation
under subtitle B;
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‘‘(B) wetland conservation under subtitle C;
or
‘‘(C) other conservation requirements
‘‘(4) addressing common weed and pest problems
and programs to control weeds and pests found on
acreage enrolled in the conservation reserve program;
‘‘(5) guidelines for planting perennial cover for
water quality and wildlife habitat improvement on
designated land;
‘‘(6) establishing criteria and priorities for State
initiatives under the environmental quality incentives
program under chapter 4 of subtitle D;
‘‘(7) establishing State and local conservation
priorities under the conservation security program
under subchapter A of chapter 2 of subtitle D;
‘‘(8) establishing and maintaining natural re-
source indicators and conservation program moni-
toring and evaluation systems;
‘‘(9) developing conservation program education
and outreach activities;
‘‘(10) evaluating innovative practices and sys-
tems under consideration for inclusion in the field of-
fice technical guides; and
‘‘(11) other matters, as determined to be appro-
priate by the Secretary.
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‘‘(c) AUTHORITY.—
‘‘(1) IN GENERAL.—Each State technical com-
mittee established under section 1261 shall—
‘‘(A) serve in an advisory capacity; and
‘‘(B) have no implementation or enforce-
ment authority.
‘‘(2) CONSIDERATION BY SECRETARY.—In car-
rying out any program under this title, the Secretary
shall give strong consideration to the recommenda-
tions of a State technical committee (including fac-
tual, technical, or scientific findings and rec-
ommendations relating to areas in which the State
technical committee bears responsibility).
‘‘(d) FACA REQUIREMENTS.—A State technical com-
mittee established under section 1261 shall be exempt from
the Federal Advisory Committee Act (5 U.S.C. App.).
‘‘(e) ADVISORY SUBCOMMITTEES.—
‘‘(1) IN
GENERAL.—Any State or local work
group, task force, or other advisory body authorized
by any Federal law (including a regulation) to advise
the Secretary on issues that are within the areas of
responsibility of a State technical committee estab-
lished under section 1261 shall be considered to be a
subcommittee of the State technical committee.
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‘‘(2) COMPOSITION.—A person eligible to serve
on a State technical committee under section 1261(c)
shall also be eligible to serve on 1 or more subcommit-
tees of a State technical committee.
‘‘(3) LOCAL WORKING GROUPS.—A local working
group shall be considered to be a subcommittee of a
State technical committee established under section
1261.’’.
SEC. 221. USE OF SYMBOLS, SLOGANS, AND LOGOS.
Section 356 of the Federal Agriculture Improvement
Act of 1996 (16 U.S.C. 5801 et seq.) is amended—
(1) in subsection (c)—
(A) 
by 
redesignating 
paragraphs 
(4)
through (7) as paragraphs (5) through (8), re-
spectively; and
(B) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) on the written approval of the Secretary, to
use, license, or transfer symbols, slogans, and logos of
the Department;’’; and
(2) in subsection (d), by adding at the end the
following:
‘‘(3) USE OF SYMBOLS, SLOGANS, AND LOGOS.—
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‘‘(A) IN GENERAL.—The Secretary may au-
thorize the Foundation to use, license, or transfer
symbols, slogans, and logos of the Department.
‘‘(B) INCOME.—
‘‘(i) IN
GENERAL.—All revenue re-
ceived by the Foundation from the use, li-
censing, or transfer of symbols, slogans, and
logos of the Department shall be transferred
to the Secretary.
‘‘(ii) CONSERVATION
OPERATIONS.—
The Secretary shall transfer all revenue re-
ceived under clause (i) to the account with-
in the Natural Resources Conservation
Service that is used to carry out conserva-
tion operations.’’.
Subtitle C—Organic Farming
SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.
(a) ESTABLISHMENT.—There is established in the
Treasury of the United States a fund to be known as the
‘‘Organic Agriculture Research Trust Fund’’ (referred to in
this section as the ‘‘Fund’’), consisting of—
(1) such amounts as are transferred to the Fund
under subsection (b); and
(2) any interest earned on investment of
amounts in the Fund under subsection (d).
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(b) TRANSFER TO FUND.—During fiscal year 2003, the
Commodity Credit Corporation shall transfer $45,000,000
to the Fund, which shall remain available until expended.
(c) EXPENDITURES FROM FUND.—On request by the
Secretary of Agriculture, the Secretary of the Treasury shall
transfer from the Fund to the Secretary of Agriculture such
amounts as the Secretary of Agriculture determines are
necessary—
(1) to carry out section 1672B of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7
U.S.C. 5925b); and
(2) for the board of trustees of the National Or-
ganic Research Endowment Institute established
under section 232(a) (referred to in this subtitle as
the ‘‘Institute’’) to implement a program of organic
products research designed by the Institute and ap-
proved by the Secretary.
(d) INVESTMENT OF AMOUNTS.—
(1) IN GENERAL.—
(A) INVESTMENT.—The Secretary of the
Treasury shall invest such portion of the Fund
as is not, in the judgment of the Secretary of the
Treasury, required to meet current withdrawals.
(B) TYPES OF INVESTMENTS.—Investments
may be made only in—
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(i) an obligation of the United States
or an agency of the United States;
(ii) a general obligation of a State or
a political subdivision of a State;
(iii) an interest-bearing account or cer-
tificate of deposit of a bank that is a mem-
ber of the Federal Reserve System; or
(iv) an obligation fully guaranteed as
to principal and interest by the United
States.
(2) ACQUISITION OF OBLIGATIONS.—For the pur-
pose of investments under paragraph (1), obligations
may be acquired—
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations
at the market price.
(3) SALE OF OBLIGATIONS.—Any obligation ac-
quired by the Fund may be sold by the Secretary of
the Treasury at the market price.
(4) CREDITS TO FUND.—The interest and divi-
dends on, and the proceeds from the sale or redemp-
tion of, any obligations, interest-bearing accounts, or
certificates of deposit held in the Fund shall be cred-
ited to and form a part of the Fund.
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SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RE-
SEARCH ENDOWMENT INSTITUTE.
(a) IN GENERAL.—The Secretary of Agriculture, in
consultation with the National Organic Standards Board,
shall establish in the Department of Agriculture an institute
to be known as the ‘‘National Organic Research Endowment
Institute’’ (referred to in this section as the ‘‘Institute’’).
(b) BOARD OF TRUSTEES.—
(1) IN GENERAL.—The Institute shall be headed
by a board of trustees composed of producers and han-
dlers of organically grown and processed agricultural
commodities appointed by the Secretary.
(2) GEOGRAPHIC REPRESENTATION.—The mem-
bership of the Board of Trustees shall reflect equally
each of the various regions in the United States in
which organically grown and processed agricultural
commodities are produced.
(c) DUTIES.—The duties of the Institute shall be to aid
the organically grown and processed agricultural commod-
ities industry through the development and implementation
of a plan for organic products research described in sub-
section (d)(1).
(d) IMPLEMENTATION OF PLAN.—
(1) IN GENERAL.—The board of trustees of the
Institute shall implement a plan for organic products
research, to be carried out using funds made available
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to the board of trustees of the Institute from the Or-
ganic Agriculture Research Trust Fund established by
section 231.
(2) EXPANSION OF MARKETS.—In implementing
the plan described in paragraph (1), the board of
trustees of the Institute shall provide a permanent
system for funding research activities (as defined in
section 1672B of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925b).
(e) COMPENSATION OF MEMBERS.—A member of the
board of trustees of the Institute shall serve without com-
pensation.
(f) TRAVEL EXPENSES.—To the extent recommended
by the board of trustees of the Institute and approved by
the Secretary of Agriculture, a member of the board shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agen-
cy under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the Insti-
tute.
Subtitle D—Regional Equity
SEC. 241. ALLOCATION OF CONSERVATION FUNDS BY
STATE.
(a) STATE ALLOCATION.—
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(1) IN GENERAL.—To the maximum extent prac-
ticable, in each of fiscal years 2002 through 2006, the
Secretary of Agriculture (referred to in this section as
the ‘‘Secretary’’), subject to requirements of the con-
servation programs administered by the Secretary,
shall ensure that each State receives, at a minimum,
the share of the funds made available under this title
(and amendments made by this title) that equals, at
a minimum, $12,000,000 for each State, for use in
accordance with paragraph (2), for purposes con-
sistent with this title.
(2) USE OF FUNDS.—Of the minimum amount
made available to each State under paragraph (1)—
(A) $5,000,000 shall be used in accordance
with the environmental quality incentives pro-
gram under chapter 4 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C.
3839aa et seq.); and
(B) $7,000,000 shall be used in accordance
with other conservation programs administered
by the Secretary.
(3) UNUSED FUNDING.—Any funds made avail-
able for a fiscal year under paragraph (1) that are
not obligated by April 1 of the fiscal year may be
used to carry out other activities under subtitle D of
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title XII of the Food Security Act of 1985 (16 U.S.C.
3801 et seq.).
Subtitle E—Miscellaneous
SEC. 261. CRANBERRY ACREAGE RESERVE PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE AREA.—The term ‘‘eligible area’’
means a wetland or buffer strip adjacent to a wetland
that, as determined by the Secretary—
(A)(i) is used, and has a history of being
used, for the cultivation of cranberries; or
(ii) is an integral component of a cran-
berry-growing operation;
(B) is located in an environmentally sen-
sitive area.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(b) PROGRAM.—The Secretary shall establish a pro-
gram to purchase permanent easements in eligible areas
from willing sellers.
(c) PURCHASE PRICE.—The Secretary shall ensure, to
the maximum extent practicable, that each easement pur-
chased under this section is for an amount that appro-
priately reflects the range of values for agricultural and
nonagricultural land in the region in which the eligible
area subject to the easement is located (including whether
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that land is located in 1 or more environmentally sensitive
areas, as determined by the Secretary).
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000.
SEC. 262. KLAMATH BASIN.
(a) DEFINITIONS.—In this section:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(2) TASK
FORCE.—The term ‘‘Task Force’’
means the Klamath Basin Interagency Task Force es-
tablished under subsection (b).
(b) INTERAGENCY TASK FORCE.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—The Secretary of Agri-
culture, in conjunction with the Secretary of the
Interior, shall establish the Klamath Basin
Interagency Task Force.
(B) APPROVAL OF MEMBER.—A decision of
the Task Force that affects any area under the
jurisdiction of a member of the Task Force de-
scribed in paragraph (2) shall not be imple-
mented without the consent of the member.
(2) MEMBERSHIP.—The Task Force shall include
representatives of—
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(A) 
the 
Department 
of 
Agriculture,
including—
(i) the Natural Resources Conservation
Service; and
(ii) the Farm Service Agency;
(B) 
the 
Department 
of 
the 
Interior,
including—
(i) the United States Fish and Wildlife
Service;
(ii) the Bureau of Reclamation; and
(iii) the Bureau of Indian Affairs;
(C) the Department of Commerce, including
the National Marine Fisheries Service;
(D) the Council on Environmental Quality;
(E) the Federal Energy Regulatory Com-
mission;
(F) the Environmental Protection Agency;
and
(G) the United States Geological Survey.
(3) DUTIES.—The Task Force shall use conserva-
tion programs of the Department of Agriculture and
other Federal programs in the Klamath Basin in Or-
egon and California for the purposes of—
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(A) promoting agricultural production and
environmental quality as compatible Klamath
Basin goals;
(B) water conservation and improved agri-
cultural practices;
(C) aquatic ecosystem restoration;
(D) improvement of water quality and
quantity;
(E) recovery and enhancement of endan-
gered species, including anadromous fish species
and resident fish species; and
(F) restoration of the national wildlife ref-
uges.
(4) COOPERATIVE AGREEMENT.—The Secretary
of Agriculture, Secretary of the Interior, and Sec-
retary of Commerce shall enter into a cooperative
agreement to—
(A) provide funding to the Task Force; and
(B) use conservation programs administered
by the Secretary of Agriculture and other Fed-
eral programs administered by the Secretary of
the Interior and Secretary of Commerce in car-
rying out the purposes described in paragraph
(3).
(5) GRANT PROGRAM.—
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(A) IN GENERAL.—The Task Force shall es-
tablish a grant program (including appropriate
cost-sharing, monitoring, and enforcement re-
quirements) under which the Secretary of Agri-
culture, the Secretary of the Interior, or the Sec-
retary of Commerce may enter into 1 or more
agreements or contracts with non-Federal enti-
ties, Indian tribes (as defined in section 4 of the
Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450b)), environmental
organizations, and water districts in the Klam-
ath Basin to carry out the purposes described in
paragraph (3).
(B) CONTRACT TERMS.—An agreement or
contract under subparagraph (A) shall—
(i) specify the responsibilities of the en-
tity and the Secretary under the agreement
or contract;
(ii) provide for such cost-sharing as the
Secretary considers appropriate; and
(iii) include mechanisms for moni-
toring and enforcement requirements.
(c) REPORT AND PLAN.—
(1) DEVELOPMENT.—
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(A) REPORT.—Not later than 180 days
after the date of enactment of this Act, the Task
Force, after soliciting input from the States of
California and Oregon, local public agencies, In-
dian tribes, Klamath Project districts, environ-
mental organizations, and the stakeholder com-
munity, shall issue a report that—
(i) considers the impacts of the biologi-
cal assessment, the biological opinion, ac-
tivities of the Upper Klamath Basin Work-
ing Group, activities of the Pacific Fisheries
Restoration Task Force, State water adju-
dications, and the resolution of tribal rights,
that may affect actions of the Task Force;
and
(ii) includes a description of Federal
spending in the Klamath Basin for fiscal
years 2000, 2001, and 2002.
(B) DRAFT PLAN.—Not later than 60 days
after completion of the report under subpara-
graph (A), the Task Force shall develop, and pro-
vide public notice of and an opportunity for
comment on, a draft 5-year plan to perform the
duties of the Task Force under subsection (b)(3).
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(C) FINAL PLAN.—Not later than 1 year
after the date of enactment of this Act, the Task
Force shall finalize the plan described in sub-
paragraph (B).
(2) MATTERS
TO
BE
CONSIDERED.—In devel-
oping the plan under paragraph (1), the Task Force
shall consider—
(A) the use of water conservation easements
by voluntary participants;
(B) purchase of agricultural land from will-
ing sellers, with priority given to land that will
enhance natural water storage capabilities;
(C) benefits to the agricultural economy
through incentives for the use of irrigation effi-
ciency, water conservation, or other agricultural
practices;
(D) wetland restoration;
(E) feasibility studies for alternative water
storage, water conservation, demand reduction,
and restoration of endangered species;
(F) improvement of upper Klamath Basin
watershed and water quality;
(G) improvement of habitat in the Tule
Lake National Wildlife Refuge, the Lower Klam-
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ath National Wildlife Refuge, and the Upper
Klamath Lake National Wildlife Refuge; and
(H) fish screening and water metering.
(d) COOPERATION WITH NON-FEDERAL ENTITIES.—
In carrying out the duties of the Task Force under this sec-
tion, the Task Force shall—
(1) consult with—
(A) environmental, fishing, and agricul-
tural interests; and
(B) on a government-to-government basis,
the Klamath, Hoopa, Yurok, and Karuk Tribes;
(2) provide appropriate opportunities for public
participation; and
(3) hold meetings at least once every 3 months
in the Klamath Basin with opportunities for stake-
holder participation.
(e) FUNDING.—
(1) IN GENERAL.—To carry out the purposes de-
scribed in subsection (b)(3), the Secretary shall use
$175,000,000 of the funds of the Commodity Credit
Corporation for the period of fiscal years 2003
through 2006, of which—
(A) $15,000,000 shall be made available to
the Klamath, Hoopa, Yurok, and Karuk Tribes
for use in the State of California; and
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(B) $15,000,000 shall be made available to
those Tribes for use in the State of Oregon.
(2) FUNDS MADE AVAILABLE TO THE TRIBES.—
(A) IN GENERAL.—The funds made avail-
able to the Tribes under paragraph (1) shall be
for projects for specific habitat improvement re-
lated to the recovery of threatened and endan-
gered species to be carried out by the appropriate
tribal natural resources department, consistent
with the purposes of this section.
(B) REPORTS.—The Tribes shall provide a
biennial report to the Task Force on expendi-
tures of funds during the period covered by the
report.
(3) OTHER FUNDS.—The funds made available
under paragraph (1) shall be in addition to funds
available to the States of California and Oregon
under other provisions of this Act (including amend-
ments made by this Act).
(4) UNUSED FUNDING.—Any funds made avail-
able for a fiscal year under paragraph (1) that are
not obligated by April 1, 2006, may be used to carry
out other activities under subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3801 et seq.).
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(5) EXPIRATION
OF
AUTHORITY
TO
OBLIGATE
FUNDS.—The Secretary may not obligate funds made
available under this subsection after September 30,
2006.
(f) SAVINGS PROVISION.—Nothing in this section re-
garding the Klamath Basin affects any right or obligation
of any party under any treaty or any other provision of
Federal or State law.
(g) COOPERATIVE
AGREEMENTS.—Notwithstanding
the Federal Grant and Cooperative Agreement Act of 1977
(41 U.S.C. 501 et seq.), the Secretary may enter into cooper-
ative agreements under this section.
TITLE III—TRADE
Subtitle A—Agricultural Trade De-
velopment and Assistance Act of
1954 and Related Statutes
SEC. 301. UNITED STATES POLICY.
Section 2(2) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691(2)) is amended
by inserting before the semicolon at the end the following:
‘‘and conflict prevention’’.
SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1722) is amended—
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(1) in subsection (b), by adding at the end the
following:
‘‘(3) PROGRAM DIVERSITY.—The Administrator
shall—
‘‘(A) encourage eligible organizations to
propose and implement program plans to ad-
dress 1 or more aspects of the program under
section 201; and
‘‘(B) consider proposals that incorporate a
variety of program objectives and strategic plans
based on the identification by eligible organiza-
tions of appropriate activities to assist develop-
ment in foreign countries.’’;
(2) in subsection (e)(1), by striking ‘‘not less
than $10,000,000, and not more than $28,000,000,’’
and inserting ‘‘not less than 5 percent nor more than
10 percent of the funds’’; and
(3) by adding at the end the following:
‘‘(h) CERTIFIED INSTITUTIONAL PARTNERS.—
‘‘(1) IN
GENERAL.—The Administrator or the
Secretary, as applicable, shall promulgate regulations
and issue guidelines to permit private voluntary or-
ganizations and cooperatives to be certified as institu-
tional partners.
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‘‘(2) REQUIREMENTS.—To become a certified in-
stitutional partner, a private voluntary organization
or cooperative shall submit to the Administrator evi-
dence of organizational capacity that describes—
‘‘(A) the financial, programmatic, com-
modity management, and auditing abilities and
practices of the organization or cooperative; and
‘‘(B) the capacity of the organization or co-
operative to carry out projects in particular
countries.
‘‘(3) MULTI-COUNTRY
PROPOSALS.—A certified
institutional partner shall be eligible to—
‘‘(A) submit a single proposal for 1 or more
countries in which the certified institutional
partner has already demonstrated organizational
capacity; and
‘‘(B) receive expedited review of the pro-
posal.’’.
SEC. 303. GENERATION AND USE OF CURRENCIES BY PRI-
VATE VOLUNTARY ORGANIZATIONS AND CO-
OPERATIVES.
Section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amended—
(1) in the section heading, by striking ‘‘FOR-
EIGN’’;
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(2) in subsection (a), by striking ‘‘the recipient
country, or in a country’’ and inserting ‘‘1 or more
recipient countries, or 1 or more countries’’;
(3) in subsection (b)—
(A) by striking ‘‘in recipient countries, or
in countries’’ and inserting ‘‘1 or more recipient
countries, or in 1 or more countries’’; and
(B) by striking ‘‘foreign currency’’;
(4) in subsection (c)—
(A) by striking ‘‘foreign currency’’; and
(B) by striking ‘‘the recipient country, or in
a country’’ and inserting ‘‘1 or more recipient
countries, or in 1 or more countries’’; and
(5) in subsection (d)—
(A) by striking ‘‘Foreign currencies’’ and
inserting ‘‘Proceeds’’;
(B) in paragraph (2)—
(i) by striking ‘‘income generating’’
and inserting ‘‘income-generating’’; and
(ii) by striking ‘‘the recipient country
or within a country’’ and inserting ‘‘1 or
more recipient countries or within 1 or
more countries’’; and
(C) in paragraph (3)—
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(i) by inserting a comma after ‘‘in-
vested’’; and
(ii) by inserting a comma after ‘‘used’’.
SEC. 304. LEVELS OF ASSISTANCE.
Section 204 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1724) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘that for
each of fiscal years 1996 through 2002 is not less
than 2,025,000 metric tons.’’ and inserting ‘‘that
is not less than—
‘‘(A) 2,100,000 metric tons for fiscal year
2002;
‘‘(B) 2,200,000 metric tons for fiscal year
2003;
‘‘(C) 2,300,000 metric tons for fiscal year
2004;
‘‘(D) 2,400,000 metric tons for fiscal year
2005; and
‘‘(E) 2,500,000 metric tons for fiscal year
2006.’’; and
(B) in paragraph (2), by striking ‘‘1996
through 2002’’ and inserting ‘‘2002 through
2006’’; and
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(2) in subsection (b)(1), by inserting ‘‘(including
crude degummed soybean oil)’’ after ‘‘bagged commod-
ities’’.
SEC. 305. FOOD AID CONSULTATIVE GROUP.
Section 205(f) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended
by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.
Section 206(a) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1726(a)) is amended
by 
striking 
‘‘$1,000,000,000’’ 
and 
inserting
‘‘$2,000,000,000’’.
SEC. 307. ADMINISTRATION.
Section 207 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1726a) is amended—
(1) in subsection (a)—
(A) by redesignating paragraph (2) as
paragraph (3); and
(B) by striking paragraph (1) and inserting
the following:
‘‘(1) RECIPIENT
COUNTRIES.—A proposal to
enter into a nonemergency food assistance agreement
under this title shall identify the recipient country or
countries that are the subject of the agreement.
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‘‘(2) TIMING.—Not later than 120 days after the
date of submission to the Administrator of a proposal
submitted by an eligible organization under this title,
the Administrator shall determine whether to accept
the proposal.’’;
(2) in subsection (b), by striking ‘‘guideline’’
each place it appears and inserting ‘‘guideline or pol-
icy determination’’; and
(3) by adding at the end the following:
‘‘(e) TIMELY APPROVAL.—
‘‘(1) IN GENERAL.—The Administrator shall fi-
nalize program agreements and resource requests for
programs under this section before the beginning of
each fiscal year.
‘‘(2) REPORT.—Not later than December 1 of
each year, the Administrator shall submit to the Com-
mittee on Agriculture and the Committee on Inter-
national Relations of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that contains—
‘‘(A) a list of programs, countries, and com-
modities approved to date for assistance under
this section; and
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‘‘(B) a statement of the total amount of
funds approved to date for transportation and
administrative costs under this section.
‘‘(f) DIRECT DELIVERY.—In addition to practices in
effect on the date of enactment of this subsection, the Sec-
retary may approve an agreement that provides for direct
delivery of agricultural commodities to milling or proc-
essing facilities more than 50 percent of the interest in
which is owned by United States citizens in foreign coun-
tries, with the proceeds of transactions transferred in cash
to eligible organizations described in section 202(d) to carry
out approved projects.’’.
SEC. 308. ASSISTANCE FOR STOCKPILING AND RAPID
TRANSPORTATION, 
DELIVERY, 
AND 
DIS-
TRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended
by striking ‘‘and 2002’’ and inserting ‘‘through 2006’’.
SEC. 309. PILOT EMERGENCY RELIEF PROGRAM TO PRO-
VIDE LIVE LAMB TO AFGHANISTAN.
Title II of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1721 et seq.) is amended
by adding at the end the following:
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‘‘SEC. 209. PILOT EMERGENCY RELIEF PROGRAM TO PRO-
VIDE LIVE LAMB TO AFGHANISTAN.
‘‘(a) IN GENERAL.—The President may establish a
pilot emergency relief program under this title to provide
live lamb to Afghanistan on behalf of the people of the
United States.
‘‘(b) REPORT.—Not later than January 1, 2004, the
Secretary shall submit to Congress a report that—
‘‘(1)(A) evaluates the success of the program
under subsection (a); or
‘‘(B) if the program has not succeeded or has not
been implemented, explains in detail why the pro-
gram has not succeeded or has not been implemented;
and
‘‘(2) discusses the feasibility and desirability of
providing assistance in the form of live animals.’’.
SEC. 310. SALE PROCEDURE.
Section 403 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1733) is amended—
(1) in subsection (b)—
(A) by striking ‘‘The Secretary’’ and insert-
ing the following:
‘‘(1) IN GENERAL.—In carrying out this Act, the
Secretary’’; and
(B) by adding at the end the following:
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‘‘(2) CURRENCIES.—Sales of commodities de-
scribed in paragraph (1) may be in United States
dollars or in a different currency.’’;
(2) in subsection (e)—
(A) by striking ‘‘In carrying’’ and inserting
the following:
‘‘(1) IN GENERAL.—In carrying’’; and
(B) by adding at the end the following:
‘‘(2) SALE
PRICE.—Sales of commodities de-
scribed in paragraph (1) shall be made at a reason-
able market price in the economy where the com-
modity is to be sold, as determined by the Secretary
or the Administrator, as appropriate.’’; and
(3) by adding at the end the following:
‘‘(l) SALE PROCEDURE.—Subsections (b)(2) and (e)(2)
shall apply to sales of commodities in recipient countries
to generate proceeds to carry out projects under—
‘‘(1) section 416(b) of the Agricultural Act of
1949 (7 U.S.C. 1431(b)); and
‘‘(2) title VIII of the Agricultural Trade Act of
1978.’’.
SEC. 311. PREPOSITIONING.
Section 407(c)(4) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4))
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is amended by striking ‘‘and 2002’’ and inserting ‘‘through
2006’’.
SEC. 312. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 313. MICRONUTRIENT FORTIFICATION PROGRAM.
Section 415 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736g–2) is
amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘a
micronutrient fortification pilot program’’ and
inserting 
‘‘micronutrient 
fortification 
pro-
grams’’; and
(B) in the second sentence—
(i) by striking ‘‘the program’’ and in-
serting ‘‘a program’’;
(ii) in paragraph (1), by striking
‘‘and’’ at the end;
(iii) in paragraph (2)—
(I) by striking ‘‘whole’’; and
(II) by striking the period at the
end and inserting ‘‘; and’’; and
(iv) by adding at the end the following:
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‘‘(3) encourage technologies and systems for the
improved quality and safety of fortified grains and
other commodities that are readily transferable to de-
veloping countries.’’;
(2) in the first sentence of subsection (c)—
(A) by striking ‘‘the pilot program, whole’’
and inserting ‘‘a program,’’;
(B) by striking ‘‘the pilot program may’’
and inserting ‘‘a program may’’; and
(C) by striking ‘‘including’’ and inserting
‘‘such as’’; and
(3) in subsection (d), by striking ‘‘2002’’ and in-
serting ‘‘2006’’.
SEC. 314. JOHN OGONOWSKI FARMER-TO-FARMER PRO-
GRAM.
Section 501(c) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1737(c)) is
amended—
(1) by striking ‘‘0.4’’ and inserting ‘‘0.5,’’; and
(2) by striking ‘‘2002’’ and inserting ‘‘2006’’.
Subtitle B—Agricultural Trade Act
of 1978
SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.
(a) TERM OF SUPPLIER CREDIT PROGRAM.—Section
202(a)(2) of the Agricultural Trade Act of 1978 (7 U.S.C.
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5622(a)(2)) is amended by striking ‘‘180 days’’ and insert-
ing ‘‘12 months’’.
(b) PROCESSED AND HIGH-VALUE PRODUCTS.—Sec-
tion 202(k)(1) of the Agricultural Trade Act of 1978 (7
U.S.C. 5622(k)(1)) is amended by striking ‘‘, 2001, and
2002’’ and inserting ‘‘through 2006’’.
(c) REPORT.—Section 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5622) is amended by adding at the
end the following:
‘‘(l) REPORT
ON AGRICULTURAL EXPORT CREDIT
PROGRAMS.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this subsection, and annually
thereafter, the Secretary shall submit to the Com-
mittee on Agriculture and the Committee on Inter-
national Relations of the House of Representatives
and the Committee on Agriculture, Nutrition and
Forestry of the Senate a report on the status of multi-
lateral negotiations regarding agricultural export
credit programs at the World Trade Organization
and the Organization of Economic Cooperation and
Development in fulfillment of Article 10.2 of the
Agreement on Agriculture (as described in section
101(d)(2) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(2))).
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‘‘(2) CLASSIFIED
INFORMATION.—The report
under paragraph (1) shall be submitted in unclassi-
fied form, but may contain a classified annex.’’.
(d) REAUTHORIZATION.—Section 211(b)(1) of the Ag-
ricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is
amended by striking ‘‘2002’’ and inserting ‘‘2006’’.
SEC. 322. MARKET ACCESS PROGRAM.
(a) IN GENERAL.—Section 211(c) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)) is amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indent-
ing appropriately;
(2) by striking ‘‘The Commodity’’ and inserting
the following:
‘‘(1) IN GENERAL.—The Commodity’’;
(3) by striking subparagraph (A) (as so redesig-
nated) and inserting the following:
‘‘(A) in addition to any funds that may be
specifically appropriated to implement a market
access program, not more than $100,000,000 for
fiscal year 2002, $120,000,000 for fiscal year
2003, 
$140,000,000 
for 
fiscal 
year 
2004,
$180,000,000 
for 
fiscal 
year 
2005, 
and
$200,000,000 for fiscal year 2006, of the funds
of, or an equal value of commodities owned by,
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the Commodity Credit Corporation, except that
this paragraph shall not apply to section 203(h);
and’’; and
(4) by adding at the end the following:
‘‘(2) PROGRAM
PRIORITIES.—Of funds made
available under paragraph (1)(A) in excess of
$90,000,000 for any fiscal year, priority shall be
given to proposals—
‘‘(A) made by eligible trade organizations
that have never participated in the market access
program under this title; or
‘‘(B) for market access programs in emerg-
ing markets.’’.
(b) UNITED STATES QUALITY EXPORT INITIATIVE.—
(1) FINDINGS.—Congress finds that—
(A) the market access program established
under section 203 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5623) and foreign market de-
velopment cooperator program established under
title VII of that Act (7 U.S.C. 5721 et seq.) tar-
get generic and value-added agricultural prod-
ucts, with little emphasis on the high quality of
United States agricultural products; and
(B) new promotional tools are needed to en-
able United States agricultural products to com-
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pete in higher margin, international markets on
the basis of quality.
(2) INITIATIVE.—Section 203 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5623) is amended by
adding at the end the following:
‘‘(h) UNITED STATES QUALITY EXPORT INITIATIVE.—
‘‘(1) IN GENERAL.—Subject to the availability of
appropriations, using the authorities under this sec-
tion, the Secretary shall establish a program under
which, on a competitive basis, using practical and ob-
jective criteria, several agricultural products are se-
lected to carry the ‘U.S. Quality’ seal.
‘‘(2) PROMOTIONAL
ACTIVITIES.—Agricultural
products selected under paragraph (1) shall be pro-
moted using the ‘U.S. Quality’ seal at trade fairs in
key markets through electronic and print media.
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated such sums as
are necessary to carry out this subsection.’’.
SEC. 323. EXPORT ENHANCEMENT PROGRAM.
(a) IN GENERAL.—Section 301(e)(1)(G) of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amend-
ed by striking ‘‘fiscal year 2002’’ and inserting ‘‘each of
fiscal years 2002 through 2006’’.
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(b) UNFAIR TRADE PRACTICES.—Section 102(5)(A) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A))
is amended—
(1) in clause (i), by striking ‘‘or’’ at the end;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘, including, in the case of a state
trading enterprise engaged in the export of an agri-
cultural commodity, pricing practices that are not
consistent with sound commercial practices conducted
in the ordinary course of trade; or’’; and
(3) by adding at the end the following:
‘‘(iii) changes United States export
terms of trade through a deliberate change
in the dollar exchange rate of a competing
exporter.’’.
SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
Section 703 of the Agricultural Trade Act of 1978 (7
U.S.C. 5723) is amended to read as follows:
‘‘SEC. 703. FUNDING.
‘‘(a) IN GENERAL.—To carry out this title, the Sec-
retary shall use funds of the Commodity Credit Corpora-
tion, or commodities of the Commodity Credit Corporation
of a comparable value, in the following amounts:
‘‘(1) For fiscal year 2002, $37,500,000.
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‘‘(2) For fiscal year 2003, $40,000,000.
‘‘(3) For fiscal year 2004 and each subsequent
fiscal year, $42,500,000.
‘‘(b) PROGRAM PRIORITIES.—Of funds or commodities
provided under subsection (a) in excess of $35,000,000 for
any fiscal year, priority shall be given to proposals—
‘‘(1) made by eligible trade organizations that
have never participated in the program established
under this title; or
‘‘(2) for programs established under this title in
emerging markets.’’.
SEC. 325. FOOD FOR PROGRESS AND EDUCATION PRO-
GRAMS.
(a) IN GENERAL.—The Agricultural Trade Act of 1978
(7 U.S.C. 5601 et seq.) is amended by adding at the end
the following:
‘‘TITLE 
VIII—FOOD 
FOR
PROGRESS AND EDUCATION
PROGRAMS
‘‘SEC. 801. DEFINITIONS.
‘‘In this title:
‘‘(1) 
COOPERATIVE.—The 
term 
‘cooperative’
means a private sector organization the members of
which—
‘‘(A) own and control the organization;
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‘‘(B) share in the profits of the organiza-
tion; and
‘‘(C) are provided services (such as business
services and outreach in cooperative develop-
ment) by the organization.
‘‘(2) CORPORATION.—The term ‘Corporation’
means the Commodity Credit Corporation.
‘‘(3) DEVELOPING COUNTRY.—The term ‘devel-
oping country’ means a foreign country that has—
‘‘(A) a shortage of foreign exchange earn-
ings; and
‘‘(B) difficulty meeting all of the food needs
of the country through commercial channels and
domestic production.
‘‘(4) ELIGIBLE COMMODITY.—The term ‘eligible
commodity’ means an agricultural commodity (in-
cluding vitamins and minerals) acquired by the Sec-
retary or the Corporation for disposition in a pro-
gram authorized under this title through—
‘‘(A) commercial purchases; or
‘‘(B) inventories of the Corporation.
‘‘(5) ELIGIBLE ORGANIZATION.—The term ‘eligi-
ble organization’ means a private voluntary organiza-
tion, cooperative, nongovernmental organization, or
foreign country, as determined by the Secretary.
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‘‘(6) EMERGING AGRICULTURAL COUNTRY.—The
term ‘emerging agricultural country’ means a foreign
country that—
‘‘(A) is an emerging democracy; and
‘‘(B) has made a commitment to introduce
or expand free enterprise elements in the agricul-
tural economy of the country.
‘‘(7) FOOD SECURITY.—The term ‘food security’
means access by all people at all times to sufficient
food and nutrition for a healthy and productive life.
‘‘(8) NONGOVERNMENTAL ORGANIZATION.—
‘‘(A) IN GENERAL.—The term ‘nongovern-
mental organization’ means an organization that
operates on a local level to solve development
problems in a foreign country in which the orga-
nization is located.
‘‘(B) EXCLUSION.—The term ‘nongovern-
mental organization’ does not include an organi-
zation that is primarily an agency or instru-
mentality of the government of a foreign country.
‘‘(9) PRIVATE VOLUNTARY ORGANIZATION.—The
term ‘private voluntary organization’ means a non-
profit, nongovernmental organization that—
‘‘(A) receives—
‘‘(i) funds from private sources; and
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‘‘(ii) voluntary contributions of funds,
staff time, or in-kind support from the pub-
lic;
‘‘(B) is engaged in or is planning to engage
in nonreligious voluntary, charitable, or develop-
ment assistance activities; and
‘‘(C) in the case of an organization that is
organized under the laws of the United States or
a State, is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986
that is exempt from taxation under section
501(a) of that Code.
‘‘(10) PROGRAM.—The term ‘program’ means a
food or nutrition assistance or development initiative
proposed by an eligible organization and approved by
the Secretary under this title.
‘‘(11) RECIPIENT COUNTRY.—The term ‘recipient
country’ means an emerging agricultural country
that receives assistance under a program.
‘‘SEC. 802. FOOD FOR PROGRESS AND EDUCATION PRO-
GRAMS.
‘‘(a) IN GENERAL.—There are established the Food for
Progress Program and the International Food for Edu-
cation and Nutrition Program through which eligible com-
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modities are made available to eligible organizations to
carry out programs of assistance in developing countries.
‘‘(b) FOOD FOR PROGRESS PROGRAM.—
‘‘(1) IN GENERAL.—To provide agricultural com-
modities to support the introduction or expansion of
free trade enterprises in national economies and to
promote food security in recipient countries, the Sec-
retary shall establish the Food for Progress Program,
under which the Secretary may enter into agreements
(including multiyear agreements and agreements for
programs in more than 1 country) with entities de-
scribed in paragraph (2).
‘‘(2) ENTITIES.—The Secretary may enter into
agreements under paragraph (1) with—
‘‘(A) the governments of emerging agricul-
tural countries;
‘‘(B) private voluntary organizations;
‘‘(C) nonprofit agricultural organizations
and cooperatives;
‘‘(D) nongovernmental organizations; and
‘‘(E) other private entities.
‘‘(3) CONSIDERATIONS.—In determining whether
to enter into an agreement to establish a program
under paragraph (1), the Secretary shall take into
consideration whether an emerging agricultural coun-
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try is committed to carrying out, or is carrying out,
policies that promote—
‘‘(A) economic freedom;
‘‘(B) private production of food commodities
for domestic consumption; and
‘‘(C) the creation and expansion of efficient
domestic markets for the purchase and sale of
those commodities.
‘‘(c) INTERNATIONAL FOOD FOR EDUCATION AND NU-
TRITION PROGRAM.—
‘‘(1) IN GENERAL.—In cooperation with other
countries, the Secretary shall establish an initiative
under this title to be known as the ‘International
Food for Education and Nutrition Program’, through
which the Secretary may provide to eligible organiza-
tions agricultural commodities and technical and nu-
tritional assistance in connection with education pro-
grams to improve food security and enhance edu-
cational opportunities for preschool age and primary
school age children in recipient countries.
‘‘(2) AGREEMENTS.—In carrying out this sub-
section, the Secretary—
‘‘(A) shall administer the programs under
this subsection in manner that is consistent with
this title; and
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‘‘(B) may enter into agreements with eligi-
ble organizations—
‘‘(i) to purchase, acquire, and donate
eligible commodities to eligible organiza-
tions to carry out agreements in recipient
countries; and
‘‘(ii) to provide technical and nutri-
tional assistance to carry out agreements in
recipient countries.
‘‘(3) OTHER DONOR COUNTRIES.—The Secretary
shall encourage other donor countries, directly or
through eligible organizations—
‘‘(A) to donate goods and funds to recipient
countries; and
‘‘(B) to provide technical and nutritional
assistance to recipient countries.
‘‘(4) PRIVATE SECTOR.—The President and the
Secretary are urged to encourage the support and ac-
tive involvement of the private sector, foundations,
and other individuals and organizations in programs
and activities assisted under this subsection.
‘‘(5) GRADUATION.—An agreement with an eligi-
ble organization under this subsection shall include
provisions—
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‘‘(A)(i) to sustain the benefits to the edu-
cation, enrollment, and attendance of children in
schools in the targeted communities when the
provision of commodities and assistance to a re-
cipient country under the program under this
subsection terminates; and
‘‘(ii) to estimate the period of time required
until the recipient country or eligible organiza-
tion is able to provide sufficient assistance with-
out additional assistance under this subsection;
or
‘‘(B) to provide other long-term benefits to
targeted populations of the recipient country.
‘‘(6) ELIGIBLE COSTS.—Subject to paragraphs
(2) and (7), the Secretary shall pay all or part of—
‘‘(A) the costs and charges described in
paragraphs (1) through (5) and (7) of section
406(b) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736(b))
with respect to an eligible commodity;
‘‘(B) the internal transportation, storage,
and handling costs incurred in moving the eligi-
ble commodity, if the Secretary determines
that—
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‘‘(i) payment of the costs is appro-
priate; and
‘‘(ii) the recipient country is a low in-
come, net food-importing country that—
‘‘(I) meets the poverty criteria es-
tablished by the International Bank for
Reconstruction and Development for
Civil Works Preference; and
‘‘(II) has a national government
that is committed to or is working to-
ward, through a national action plan,
the World Declaration on Education
for All convened in 1990 in Jomtien,
Thailand, and the followup Dakar
Framework for Action of the World
Education Forum in 2000; and
‘‘(C) the projected costs of an eligible orga-
nization for administration, sales, monitoring,
and technical assistance under an agreement
under paragraph (2) (including an itemized
budget), taking into consideration, as determined
by the Secretary—
‘‘(i) the projected amount of such costs
itemized by category; and
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‘‘(ii) the projected amount of assistance
to be received from other donors.
‘‘(7) FUNDING.—
‘‘(A) COMMODITY CREDIT CORPORATION.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the Secretary may use the funds, facili-
ties, and authorities of the Corporation to
carry out this subsection.
‘‘(ii) LIMITATION.—Not more than
$150,000,000 for each of fiscal years 2002
through 2005 shall be used to carry out this
subsection.
‘‘(B) USE LIMITATIONS.—Of the funds made
available under subparagraph (A), the Secretary
may use to carry out paragraph (6)(C) not more
than $20,000,000 for each of fiscal years 2002
through 2005.
‘‘(C) REALLOCATION.—Funds not allocated
under this subsection by April 30 of a fiscal year
shall be made available for proposals submitted
under the Food for Progress Program under sub-
section (b).
‘‘(8) ANNUAL REPORT.—The Secretary shall sub-
mit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
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Nutrition, and Forestry of the Senate an annual re-
port that describes—
‘‘(A) the results of the implementation of
this subsection during the year covered by the re-
port, including the impact on the enrollment, at-
tendance, and performance of children in
preschools and primary schools targeted under
the program under this subsection; and
‘‘(B) the level of commitments by, and the
potential for obtaining additional goods and as-
sistance from, other countries for subsequent
years.
‘‘(d) TERMS.—
‘‘(1) IN GENERAL.—The Secretary may provide
agricultural commodities under this title on—
‘‘(A) a grant basis; or
‘‘(B) subject to paragraph (2), credit terms.
‘‘(2) CREDIT TERMS.—Payment for agricultural
commodities made available under this title that are
purchased on credit terms shall be made on the same
basis as payments made under section 103 of the Ag-
ricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1703).
‘‘(3) NO EFFECT ON DOMESTIC PROGRAMS.—The
Secretary shall not make an agricultural commodity
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available for disposition under this section in any
amount that will reduce the amount of the commodity
that is traditionally made available through dona-
tions to domestic feeding programs or agencies, as de-
termined by the Secretary.
‘‘(4) MULTIYEAR AGREEMENTS.—In carrying out
this title, on request and subject to the availability of
commodities, the Secretary is encouraged to approve
agreements that provide for commodities to be made
available for distribution on a multiyear basis, if the
agreements otherwise meet the requirements of this
title.
‘‘(e) REPORTS.—Each eligible organization that enters
into an agreement under this title shall submit to the Sec-
retary, at such time as the Secretary may request, a report
containing such information as the Secretary may request
relating to the use of agricultural commodities and funds
provided to the eligible organization under this title.
‘‘(f) COORDINATION.—To ensure that the provision of
commodities under this section is coordinated with and
complements other foreign assistance provided by the
United States, assistance under this section shall be coordi-
nated through the mechanism designated by the President
to coordinate assistance under the Agricultural Trade De-
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velopment and Assistance Act of 1954 (7 U.S.C. 1691 et
seq.).
‘‘(g) QUALITY ASSURANCE.—
‘‘(1) IN GENERAL.—The Secretary shall ensure,
to the maximum extent practicable, that each eligible
organization participating in 1 or more programs
under this section—
‘‘(A) uses eligible commodities made avail-
able under this title—
‘‘(i) in an effective manner;
‘‘(ii) in the areas of greatest need; and
‘‘(iii) in a manner that promotes the
purposes of this title;
‘‘(B) in using eligible commodities, assesses
and takes into account the needs of recipient
countries and the target populations of the re-
cipient countries;
‘‘(C) works with recipient countries, and in-
digenous institutions or groups in recipient
countries, to design and carry out mutually ac-
ceptable programs authorized under this title;
‘‘(D) monitors and reports on the distribu-
tion or sale of eligible commodities provided
under this title using methods that, as deter-
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mined by the Secretary, facilitate accurate and
timely reporting;
‘‘(E) periodically evaluates the effectiveness
of the program of the eligible organization, in-
cluding, as applicable, an evaluation of whether
the development or food and nutrition purposes
of the program can be sustained in a recipient
country if the assistance provided to the recipi-
ent country is reduced and eventually termi-
nated; and
‘‘(F) considers means of improving the oper-
ation of the program of the eligible organization.
‘‘(2) CERTIFIED INSTITUTIONAL PARTNERS.—
‘‘(A) IN
GENERAL.—The Secretary shall
promulgate regulations and guidelines to permit
private voluntary organizations and cooperatives
to be certified as institutional partners.
‘‘(B) REQUIREMENTS.—To become a cer-
tified institutional partner, a private voluntary
organization or cooperative shall submit to the
Secretary evidence of organizational capacity
that describes—
‘‘(i) the financial, programmatic, com-
modity management, and auditing abilities
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and practices of the organization or cooper-
ative; and
‘‘(ii) the capacity of the organization
or cooperative to carry out projects in par-
ticular countries.
‘‘(C) MULTICOUNTRY
PROPOSALS.—A cer-
tified institutional partner shall be eligible to—
‘‘(i) submit a single proposal for 1 or
more countries in which the certified insti-
tutional partner has already demonstrated
organizational capacity; and
‘‘(ii) receive expedited review of the
proposal.
‘‘(h) TRANSSHIPMENT AND RESALE.—
‘‘(1) IN GENERAL.—The transshipment or resale
of an eligible commodity to a country other than a
recipient country shall be prohibited unless the trans-
shipment or resale is approved by the Secretary.
‘‘(2) MONETIZATION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) through (D), an eligible commodity
provided under this section may be sold for for-
eign currency or United States dollars or
bartered, with the approval of the Secretary.
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‘‘(B) SALE OR BARTER OF FOOD ASSIST-
ANCE.—The sale or barter of eligible commodities
under this title may be conducted only within
(as determined by the Secretary)—
‘‘(i) a recipient country or country
near the recipient country; or
‘‘(ii) another country, if—
‘‘(I) the sale or barter within the
recipient country or nearby country is
not practicable; and
‘‘(II) the sale or barter within
countries other than the recipient coun-
try or nearby country will not disrupt
commercial markets for the agricul-
tural commodity involved.
‘‘(C) HUMANITARIAN
OR
DEVELOPMENT
PURPOSES.—The Secretary may authorize the
use of proceeds or exchanges to pay the costs in-
curred by an eligible organization under this
title for—
‘‘(i)(I) programs targeted at hunger
and malnutrition; or
‘‘(II) development programs involving
food security or education;
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‘‘(ii) transportation, storage, and dis-
tribution of eligible commodities provided
under this title; and
‘‘(iii) administration, sales, moni-
toring, and technical assistance.
‘‘(D) EXCEPTION.—The Secretary shall not
approve the use of proceeds described in subpara-
graph (C) to fund any administrative expenses
of a foreign government.
‘‘(E) PRIVATE SECTOR ENHANCEMENT.—As
appropriate, the Secretary may provide eligible
commodities under this title in a manner that
uses commodity transactions as a means of de-
veloping in the recipient countries a competitive
private sector that can provide for the importa-
tion, transportation, storage, marketing, and dis-
tribution of commodities.
‘‘(i) DISPLACEMENT OF COMMERCIAL SALES.—In car-
rying out this title, the Secretary shall, to the maximum
extent practicable consistent with the purposes of this title,
avoid—
‘‘(1) displacing any commercial export sale of
United States agricultural commodities that would
otherwise be made;
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‘‘(2) disrupting world prices of agricultural com-
modities; or
‘‘(3) disrupting normal patterns of commercial
trade of agricultural commodities with foreign coun-
tries.
‘‘(j) DEADLINE FOR PROGRAM ANNOUNCEMENTS.—
‘‘(1) IN GENERAL.—Before the beginning of the
applicable fiscal year, the Secretary shall, to the max-
imum extent practicable—
‘‘(A) make all determinations concerning
program agreements and resource requests for
programs under this title; and
‘‘(B) announce those determinations.
‘‘(2) REPORT.—Not later than November 1 of the
applicable fiscal year, the Secretary shall submit to
the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a list of programs,
countries, and commodities, and the total amount of
funds for transportation and administrative costs,
approved to date under this title.
‘‘(k) MILITARY DISTRIBUTION OF ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall ensure,
to the maximum extent practicable, that agricultural
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commodities made available under this title are pro-
vided without regard to—
‘‘(A) the political affiliation, geographic lo-
cation, ethnic, tribal, or religious identity of the
recipient; or
‘‘(B) any other extraneous factors, as deter-
mined by the Secretary.
‘‘(2) PROHIBITION ON HANDLING OF COMMOD-
ITIES BY THE MILITARY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Secretary shall not enter
into an agreement under this title to provide ag-
ricultural commodities if the agreement requires
or permits the distribution, handling, or alloca-
tion of agricultural commodities by the military
forces of any foreign government or insurgent
group.
‘‘(B) EXCEPTION.—The Secretary may au-
thorize the distribution, handling, or allocation
of commodities by the military forces of a coun-
try in exceptional circumstances in which—
‘‘(i) nonmilitary channels are not
available for distribution, handling, or allo-
cation;
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‘‘(ii) the distribution, handling, or al-
location is consistent with paragraph (1);
and
‘‘(iii) the Secretary determines that the
distribution, handling, or allocation is nec-
essary to meet the emergency health, safety,
or nutritional requirements of the popu-
lation of a recipient country.
‘‘(3) ENCOURAGEMENT OF SAFE PASSAGE.—In
entering into an agreement under this title that in-
volves 1 or more areas within a recipient country
that is experiencing protracted warfare or civil un-
rest, the Secretary shall, to the maximum extent prac-
ticable, encourage all parties to the conflict to—
‘‘(A) permit safe passage of the commodities
and other relief supplies; and
‘‘(B) establish safe zones for—
‘‘(i) medical and humanitarian treat-
ment; and
‘‘(ii) evacuation of injured persons.
‘‘(l) LEVEL OF ASSISTANCE.—The cost of commodities
made available under this title, and the expenses incurred
in connection with the provision of those commodities shall
be in addition to the level of assistance provided under the
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Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.).
‘‘(m) COMMODITY CREDIT CORPORATION.—
‘‘(1) IN GENERAL.—Subject to paragraphs (5)
through (7), the Secretary may use the funds, facili-
ties, and authorities of the Corporation to carry out
this title.
‘‘(2) MINIMUM TONNAGE.—Subject to paragraph
(6)(B), not less than 400,000 metric tons of commod-
ities may be provided under this title for the program
established under subsection (b) for each of fiscal
years 2002 through 2006.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In
addition to tonnage authorized under paragraph (2),
there are authorized to be appropriated such sums as
are necessary to carry out the program established
under subsection (b).
‘‘(4) TITLE I FUNDS.—In addition to tonnage
and funds authorized under paragraphs (2), (3), and
(6)(B), the Corporation may use funds appropriated
to carry out title I of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1701 et
seq.)) in carrying out the program established under
subsection (b).
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‘‘(5) LIMITATION ON PURCHASES OF COMMOD-
ITIES.—The Corporation may purchase agricultural
commodities for disposition under this title only if
Corporation inventories are insufficient to satisfy
commitments made in agreements entered into under
this title.
‘‘(6) ELIGIBLE COSTS AND EXPENSES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), with respect to an eligible commodity
made available under the program established
under subsection (b), the Corporation may
pay—
‘‘(i) the costs of acquiring the eligible
commodity;
‘‘(ii) the costs associated with pack-
aging, enriching, preserving, and fortifying
of the eligible commodity;
‘‘(iii) the processing, transportation,
handling, and other incidental costs in-
curred before the date on which the com-
modity is delivered free on board vessels in
United States ports;
‘‘(iv) the vessel freight charges from
United States ports or designated Canadian
transshipment ports, as determined by the
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Secretary, to designated ports of entry
abroad;
‘‘(v) the costs associated with trans-
porting the eligible commodity from United
States ports to designated points of entry
abroad in a case in which—
‘‘(I) a recipient country is land-
locked;
‘‘(II) ports of a recipient country
cannot be used effectively because of
natural or other disturbances;
‘‘(III) carriers to a specific coun-
try are unavailable; or
‘‘(IV) substantial savings in costs
or time may be gained by the use of
points of entry other than ports;
‘‘(vi) the charges for general average
contributions arising out of the ocean trans-
port of commodities transferred; and
‘‘(vii) the costs, in addition to costs au-
thorized by clauses (i) through (vi), of
providing—
‘‘(I) assistance in the administra-
tion, sale, and monitoring of food as-
sistance activities under this title; and
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‘‘(II) 
technical 
assistance 
for
monetization programs.
‘‘(B) FUNDING.—Except for costs described
in clauses (i) through (iii) of subparagraph (A),
unless authorized in advance in an appropria-
tions 
Act 
or 
reallocated 
under 
subsection
(c)(7)(C)—
‘‘(i) not more than $55,000,000 of
funds that would be available to carry out
paragraph (2) may be used to cover costs
under clauses (iv) through (vii) of subpara-
graph (A); and
‘‘(ii) of the amount provided under
clause (i), not more than $12,000,000 shall
be made available to cover costs under
clauses (vi) and (vii) of subparagraph (A).
‘‘(7) PAYMENT OF ADMINISTRATIVE COSTS.—An
eligible organization that receives payment for ad-
ministrative costs through monetization of the eligible
commodity under subsection (h)(2) shall not be eligi-
ble to receive payment for the same administrative
costs through direct payments under paragraph
(6)(A)(vii)(I).’’.
(b) CONFORMING AMENDMENTS.—
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(1) Section 416(b)(7)(D)(iii) of the Agricultural
Act of 1949 (7 U.S.C. 1431(b)(7)(D)(iii)) is amended
by striking ‘‘the Food for Progress Act of 1985’’ and
inserting ‘‘title VIII of the Agricultural Trade Act of
1978’’.
(2) The Act of August 19, 1958 (7 U.S.C. 1431
note; Public Law 85–683) is amended by striking
‘‘the Food for Progress Act of 1985’’ and inserting
‘‘title VIII of the Agricultural Trade Act of 1978’’.
(3) Section 1110 of the Food Security Act of
1985 (7 U.S.C. 1736o) is repealed.
SEC. 326. EXPORTER ASSISTANCE INITIATIVE.
(a) FINDINGS.—Congress find that—
(1) information in the possession of Federal
agencies other than the Department of Agriculture
that is necessary for the export of agricultural com-
modities and products is available only from multiple
disparate sources; and
(2) because exporters often need access to infor-
mation quickly, exporters lack the time to search mul-
tiple sources to access necessary information, and ex-
porters often are unaware of where the necessary in-
formation can be located.
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(b) INITIATIVE.—Title I of the Agricultural Trade Act
of 1978 (7 U.S.C. 5601 et seq.) is amended by adding at
the end the following:
‘‘SEC. 107. EXPORTER ASSISTANCE INITIATIVE.
‘‘(a) IN GENERAL.—In order to create a single source
of information for exports of United States agricultural
commodities, the Secretary shall develop a website on the
Internet that collates onto a single website all information
from all agencies of the Federal Government that is relevant
to the export of United States agricultural commodities.
‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out subsection
(a)—
‘‘(1) $1,000,000 for each of fiscal years 2002
through 2004; and
‘‘(2) $500,000 for each of fiscal years 2005 and
2006.’’.
Subtitle C—Miscellaneous
Agricultural Trade Provisions
SEC. 331. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust
Act (7 U.S.C. 1736f–1) is amended by striking ‘‘2002’’ each
place it appears in subsection (b)(2)(B)(i) and paragraphs
(1) and (2) of subsection (h) and inserting ‘‘2006’’.
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SEC. 332. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law
101–624) is amended by striking ‘‘2002’’ each place it ap-
pears in subsections (a) and (d)(1)(A)(i) and inserting
‘‘2006’’.
SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE
PROGRAM.
Section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5622 note; Public Law
101–624) is amended by adding at the end the following:
‘‘(g) BIOTECHNOLOGY
AND AGRICULTURAL TRADE
PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary of Agriculture
shall establish a program to enhance foreign accept-
ance of agricultural biotechnology and United States
agricultural products developed through biotechnology.
‘‘(2) FOCUS.—The program shall address the
continuing and increasing market access, regulatory,
and marketing issues relating to export commerce of
United States agricultural biotechnology products.
‘‘(3) EDUCATION AND OUTREACH.—
‘‘(A) 
FOREIGN
MARKETS.—Support 
for
United States agricultural market development
organizations to carry out education and other
outreach efforts concerning biotechnology shall
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target such educational initiatives directed
toward—
‘‘(i) producers, buyers, consumers, and
media in foreign markets through initia-
tives in foreign markets; and
‘‘(ii) government officials, scientists,
and trade officials from foreign countries
through exchange programs.
‘‘(B) FUNDING FOR EDUCATION AND OUT-
REACH.—Funding for activities under subpara-
graph (A) may be—
‘‘(i) used through—
‘‘(I) the emerging markets pro-
gram under this section; or
‘‘(II) the Cochran Fellowship Pro-
gram under section 1543; or
‘‘(ii) applied directly to foreign market
development cooperators through the foreign
market development cooperator program es-
tablished under section 702.
‘‘(4) RAPID RESPONSE.—
‘‘(A) IN GENERAL.—The Secretary shall as-
sist exporters of United States agricultural com-
modities in cases in which the exporters are
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harmed by unwarranted and arbitrary barriers
to trade due to—
‘‘(i) marketing of biotechnology prod-
ucts;
‘‘(ii) food safety;
‘‘(iii) disease; or
‘‘(iv) other sanitary or phytosanitary
concerns.
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $1,000,000 for each
of fiscal years 2002 through 2006.
‘‘(5) FUNDING.—
‘‘(A) COMMODITY CREDIT CORPORATION.—
The Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation
to carry out this subsection (other than para-
graph (4)).
‘‘(B) FUNDING AMOUNT.—Of the funds of
the Commodity Credit Corporation, the Sec-
retary shall make available to carry out this sub-
section (other than paragraph (4)) $15,000,000
for each of fiscal years 2002 through 2006.’’.
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SEC. 334. SURPLUS COMMODITIES FOR DEVELOPING OR
FRIENDLY COUNTRIES.
(a) USE OF CURRENCIES.—Section 416(b)(7)(D) of the
Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is
amended—
(1) in clauses (i) and (iii), by striking ‘‘foreign
currency’’ each place it appears;
(2) in clause (ii)—
(A) in the first sentence, by striking ‘‘For-
eign currencies’’ and inserting ‘‘Proceeds’’; and
(B) in the second sentence, by striking ‘‘for-
eign currency’’; and
(3) in clause (iv)—
(A) by striking ‘‘Foreign currency proceeds’’
and inserting ‘‘Proceeds’’; and
(B) by striking ‘‘other than the country of
origin—’’ and all that follows and inserting
‘‘other than the country of origin, for the purpose
of carrying out programs under this subsection.’’.
(b) IMPLEMENTATION
OF
AGREEMENTS.—Section
416(b)(8) of the Agricultural Act of 1949 (7 U.S.C.
1431(b)(8)) is amended by striking ‘‘(8)(A)’’ and all that
follows through ‘‘(B) The Secretary’’ and inserting the fol-
lowing:
‘‘(8) ADMINISTRATIVE PROVISIONS.—
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‘‘(A) DIRECT
DELIVERY.—In addition to
practices in effect on the date of enactment of
this subparagraph, the Secretary may approve
an agreement that provides for direct delivery of
eligible commodities to milling or processing fa-
cilities more than 50 percent of the interest in
which is owned by United States citizens in re-
cipient countries, with the proceeds of trans-
actions transferred in cash to eligible organiza-
tions to carry out approved projects.
‘‘(B) REGULATIONS.—The Secretary’’.
(c) CERTIFIED INSTITUTIONAL PARTNERS.—Section
416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is
amended by adding at the end the following:
‘‘(c) CERTIFIED INSTITUTIONAL PARTNERS.—
‘‘(1) IN GENERAL.—The Secretary shall promul-
gate regulations and guidelines to permit private vol-
untary organizations and cooperatives to be certified
as institutional partners.
‘‘(2) REQUIREMENTS.—To become a certified in-
stitutional partner, a private voluntary organization
or cooperative shall submit to the Secretary evidence
of organizational capacity that describes—
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‘‘(A) the financial, programmatic, com-
modity management, and auditing abilities and
practices of the organization or cooperative; and
‘‘(B) the capacity of the organization or co-
operative to carry out projects in particular
countries.
‘‘(3) MULTI-COUNTRY
PROPOSALS.—A certified
institutional partner shall be eligible to—
‘‘(A) submit a single proposal for 1 or more
countries in which the certified institutional
partner has already demonstrated organizational
capacity; and
‘‘(B) receive expedited review of the pro-
posal.’’.
SEC. 335. AGRICULTURAL TRADE WITH CUBA.
(a) IN GENERAL.—Section 908 of the Agriculture,
Rural Development, Food and Drug Administration and
Related Agencies Appropriations Act, 2001 (22 U.S.C.
7207), is amended by striking subsection (b).
(b) CONFORMING AMENDMENTS.—Section 908(a) of
the Agriculture, Rural Development, Food and Drug Ad-
ministration and Related Agencies Appropriations Act,
2001 (22 U.S.C. 7207(a)) (as amended by subsection (a)),
is amended—
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(1) by striking ‘‘(a)’’ and all that follows through
‘‘Notwithstanding’’ and inserting the following:
‘‘(a) IN GENERAL.—Notwithstanding’’;
(2) by striking ‘‘(2) RULE OF CONSTRUCTION.—
Nothing in paragraph (1)’’ and inserting the fol-
lowing:
‘‘(b) RULE OF CONSTRUCTION.—Nothing in subsection
(a)’’; and
(3) by striking ‘‘(3) WAIVER.—The President
may waive the application of paragraph (1)’’ and in-
serting the following:
‘‘(c) WAIVER.—The President may waive the applica-
tion of subsection (a)’’.
SEC. 336. SENSE OF CONGRESS CONCERNING AGRICUL-
TURAL TRADE.
(a) AGRICULTURE
TRADE
NEGOTIATING
OBJEC-
TIVES.—It is the sense of Congress that the principal negoti-
ating objective of the United States with respect to agricul-
tural trade in all multilateral, regional, and bilateral nego-
tiations is to obtain competitive opportunities for the export
of United States agricultural commodities in foreign mar-
kets substantially equivalent to the competitive opportuni-
ties afforded foreign exports in United States markets and
to achieve fairer and more open conditions of agricultural
trade in bulk and value-added commodities by—
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(1) reducing or eliminating, by a date certain,
tariffs or other charges that decrease market opportu-
nities for the export of United States agricultural
commodities, giving priority to United States agricul-
tural commodities that are subject to significantly
higher tariffs or subsidy regimes of major producing
countries;
(2) immediately eliminating all export subsidies
on agricultural commodities worldwide while main-
taining bona fide food aid and preserving United
States agricultural market development and export
credit programs that allow the United States to com-
pete with other foreign export promotion efforts;
(3) leveling the playing field for United States
agricultural producers by disciplining domestic sup-
ports such that no other country can provide greater
support, measured as a percentage of total agricul-
tural production value, than the United States does
while preserving existing green box category to sup-
port conservation activities, family farms, and rural
communities;
(4) developing, strengthening, and clarifying
rules and effective dispute settlement mechanisms to
eliminate practices that unfairly decrease United
States market access opportunities for United States
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the Agreement on the Application of Sanitary
and Phytosanitary Measures (as described in sec-
tion 101(d)(3) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(3)));
(D) other unjustified technical barriers to
agricultural trade; and
(E) restrictive and nontransparent rules in
the administration of tariff rate quotas;
(5) improving import relief mechanisms to recog-
nize the unique characteristics of perishable agricul-
tural commodities;
(6) taking into account whether a party to nego-
tiations with respect to trading in an agricultural
commodity has—
(A) failed to adhere to the provisions of an
existing bilateral trade agreement with the
United States;
(B) circumvented obligations under a multi-
lateral trade agreement to which the United
States is a signatory; or
(C) manipulated its currency value to the
detriment of United States agricultural pro-
ducers or exporters; and
(7) otherwise ensuring that countries that accede
to the World Trade Organization—
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(A) have made meaningful market liberal-
ization commitments in agriculture; and
(B) make progress in fulfilling those com-
mitments over time.
(b) PRIORITY FOR AGRICULTURE TRADE.—It is the
sense of Congress that—
(1) reaching a successful agreement on agri-
culture should be the top priority of United States ne-
gotiators in World Trade Organization talks; and
(2) if the primary export competitors of the
United States fail to reduce their trade distorting do-
mestic supports and eliminate export subsidies in ac-
cordance with the negotiating objectives expressed in
this section, the United States should take steps to in-
crease the leverage of United States negotiators and
level the playing field for United States producers,
within existing World Trade Organization commit-
ments.
(c) CONSULTATION
WITH CONGRESSIONAL COMMIT-
TEES.—It is the sense of Congress that—
(1) before the United States Trade Representa-
tive negotiates a trade agreement that would reduce
tariffs on agricultural commodities or require a
change in United States agricultural law, the United
States Trade Representative should consult with the
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Committee on Agriculture and the Committee on
Ways and Means of the House of Representatives and
the Committee on Agriculture, Nutrition, and For-
estry and the Committee on Finance of the Senate;
(2) not less than 48 hours before initialing an
agreement relating to agricultural trade negotiated
under the auspices of the World Trade Organization,
the United States Trade Representative should consult
closely with the committees referred to in paragraph
(1) regarding—
(A) the details of the agreement;
(B) the potential impact of the agreement
on United States agricultural producers; and
(C) any changes in United States law nec-
essary to implement the agreement; and
(3) any agreement or other understanding
(whether verbal or in writing) that relates to agricul-
tural trade that is not disclosed to Congress before leg-
islation implementing a trade agreement is intro-
duced in either the Senate or the House of Represent-
atives should not be considered to be part of the agree-
ment approved by Congress and should have no force
and effect under Unites States law or in any dispute
settlement body.
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SEC. 337. REPORT ON USE OF PERISHABLE COMMODITIES.
Not later than 120 days after the date of enactment
of this Act, the Secretary of Agriculture shall develop and
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 on deficiencies
in transportation and storage infrastructure and defi-
ciencies in funding that have limited the use, and expansion
of use, of highly perishable and semiperishable commodities
in international food aid programs of the Department of
Agriculture.
SEC. 338. SENSE OF SENATE CONCERNING FOREIGN AS-
SISTANCE PROGRAMS.
(a) FINDINGS.—Congress finds that—
(1) the international community faces a con-
tinuing epidemic of ethnic, sectarian, and criminal
violence;
(2) poverty, hunger, political uncertainty, and
social instability are the principal causes of violence
and conflict around the world;
(3) broad-based, equitable economic growth and
agriculture development facilitates political stability,
food security, democracy, and the rule of law;
(4) democratic governments are more likely to
advocate and observe international laws, protect civil
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and human rights, pursue free market economies, and
avoid external conflicts;
(5) the United States Agency for International
Development has provided critical democracy and
governance assistance to a majority of the nations
that successfully made the transition to democratic
governments during the past 2 decades;
(6) 43 of the top 50 consumer nations of Amer-
ican agricultural products were once United States
foreign aid recipients;
(7) in the past 50 years, infant child death rates
in the developing world have been reduced by 50 per-
cent, and health conditions around the world have
improved more during this period than in any other
period;
(8) the United States Agency for International
Development child survival programs have signifi-
cantly contributed to a 10 percent reduction in infant
mortality rates worldwide in just the past 8 years;
(9) in providing assistance by the United States
and other donors in better seeds and teaching more ef-
ficient agricultural techniques over the past 2 decades
have helped make it possible to feed an additional
1,000,000,000 people in the world;
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(10) 
despite 
this 
progress, 
approximately
1,200,000,000 people, one-quarter of the world’s popu-
lation, live on less that $1 per day, and approxi-
mately 3,000,000,000 people live on only $2 per day;
(11) 95 percent of new births occur in developing
countries, including the world’s poorest countries; and
(12) only 1⁄2 percent of the Federal budget is
dedicated to international economic and humani-
tarian assistance.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that—
(1) United States foreign assistance programs
should play an increased role in the global fight
against terrorism to complement the national security
objectives of the United States;
(2) the United States should lead coordinated
international efforts to provide increased financial as-
sistance to countries with impoverished and dis-
advantaged populations that are the breeding grounds
for terrorism; and
(3) the United States Agency for International
Development and the Department of Agriculture
should substantially increase humanitarian, economic
development, and agricultural assistance to foster
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international peace and stability and the promotion
of human rights.
TITLE IV—NUTRITION
PROGRAMS
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Food Stamp Reauthor-
ization Act of 2002’’.
Subtitle A—Food Stamp Program
SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUP-
PORT.
(a) EXCLUSION.—Section 5(d)(6) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(d)(6)) is amended by adding
at the end the following: ‘‘and child support payments made
by a household member to or for an individual who is not
a member of the household if the household member is le-
gally obligated to make the payments,’’.
(b) SIMPLIFIED PROCEDURE.—Section 5 of the Food
Stamp Act of 1977 (7 U.S.C. 2014) is amended—
(1) in subsection (e), by striking paragraph (4)
and inserting the following:
‘‘(4) DEDUCTION
FOR
CHILD
SUPPORT
PAY-
MENTS.—
‘‘(A) IN GENERAL.—In lieu of providing an
exclusion for legally obligated child support pay-
ments made by a household member under sub-
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section (d)(6), a State agency may elect to pro-
vide a deduction for the amount of the payments.
‘‘(B) ORDER
OF
DETERMINING
DEDUC-
TIONS.—A deduction under this paragraph shall
be determined before the computation of the ex-
cess shelter expense deduction under paragraph
(6).’’; and
(2) by adding at the end the following:
‘‘(n) STATE OPTIONS TO SIMPLIFY DETERMINATION
OF CHILD SUPPORT PAYMENTS MADE BY HOUSEHOLD
MEMBERS.—
‘‘(1) IN
GENERAL.—Regardless of whether a
State agency elects to provide a deduction under sub-
section (e)(4), the Secretary shall establish simplified
procedures to allow State agencies, at the option of
the State agencies, to determine the amount of the le-
gally obligated child support payments made, includ-
ing procedures to allow the State agency to rely on
information from the agency responsible for imple-
menting the program under part D of title IV of the
Social Security Act (42 U.S.C. 661 et seq.) con-
cerning payments made in prior months in lieu of ob-
taining current information from the household.
‘‘(2) DURATION OF DETERMINATION OF AMOUNT
OF SUPPORT PAYMENTS.—If a State agency makes a
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determination of the amount of support payments of
a household under paragraph (1), the State agency
may provide that the amount of the exclusion or de-
duction for the household shall not change until the
eligibility of the household is next redetermined under
section 11(e)(4).’’.
SEC. 412. SIMPLIFIED DEFINITION OF INCOME.
Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)) is amended—
(1) by striking ‘‘and (15)’’ and inserting ‘‘(15)’’;
and
(2) by inserting before the period at the end the
following: ‘‘, (16) at the option of the State agency,
any educational loans on which payment is deferred,
grants, scholarships, fellowships, veterans’ educational
benefits, and the like (other than loans, grants, schol-
arships, fellowships, veterans’ educational benefits,
and the like excluded under paragraph (3)), to the ex-
tent that they are required to be excluded under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.), (17) at the option of the State agency, any
State complementary assistance program payments
that are excluded for the purpose of determining eligi-
bility for medical assistance under section 1931 of the
Social Security Act (42 U.S.C. 1396u–1), and (18) at
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the option of the State agency, any types of income
that the State agency does not consider when deter-
mining eligibility for (A) cash assistance under a
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) or the amount
of such assistance, or (B) medical assistance under
section 1931 of the Social Security Act (42 U.S.C.
1396u–1), except that this paragraph does not author-
ize a State agency to exclude wages or salaries, bene-
fits under title I, II, IV, X, XIV, or XVI of the Social
Security Act (42 U.S.C. 1381 et seq.), regular pay-
ments from a government source (such as unemploy-
ment benefits and general assistance), worker’s com-
pensation, child support payments made to a house-
hold member by an individual who is legally obli-
gated to make the payments, or such other types of in-
come the consideration of which the Secretary deter-
mines by regulation to be essential to equitable deter-
minations of eligibility and benefit levels’’.
SEC. 413. INCREASE IN BENEFITS TO HOUSEHOLDS WITH
CHILDREN.
Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)) is amended by striking paragraph (1) and insert-
ing the following:
‘‘(1) STANDARD DEDUCTION.—
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‘‘(A) IN
GENERAL.—Subject to the other
provisions of this paragraph, the Secretary shall
allow for each household a standard deduction
that is equal to the greater of—
‘‘(i) the applicable percentage specified
in subparagraph (D) of the applicable in-
come standard of eligibility established
under subsection (c)(1); or
‘‘(ii) the minimum deduction specified
in subparagraph (E).
‘‘(B) GUAM.—The Secretary shall allow for
each household in Guam a standard deduction
that is—
‘‘(i) equal to the applicable percentage
specified in subparagraph (D) of twice the
income standard of eligibility established
under subsection (c)(1) for the 48 contig-
uous States and the District of Columbia;
but
‘‘(ii) not less than the minimum de-
duction for Guam specified in subpara-
graph (E).
‘‘(C) HOUSEHOLDS OF 6 OR MORE MEM-
BERS.—The income standard of eligibility estab-
lished under subsection (c)(1) for a household of
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6 members shall be used to calculate the standard
deduction for each household of 6 or more mem-
bers.
‘‘(D) APPLICABLE
PERCENTAGE.—For the
purpose of subparagraph (A), the applicable per-
centage shall be—
‘‘(i) 8 percent for each of fiscal years
2002 through 2007;
‘‘(ii) 8.25 percent for fiscal year 2008;
‘‘(iii) 8.5 percent for each of fiscal
years 2009 and 2010; and
‘‘(iv) 9 percent for fiscal year 2011
and each fiscal year thereafter.
‘‘(E) MINIMUM DEDUCTION.—The minimum
deduction shall be $134, $229, $189, $269, and
$118 for the 48 contiguous States and the Dis-
trict of Columbia, Alaska, Hawaii, Guam, and
the Virgin Islands of the United States, respec-
tively.’’.
SEC. 
414. 
SIMPLIFIED 
DETERMINATION 
OF 
HOUSING
COSTS.
(a) IN GENERAL.—Section 5(e)(7) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(e)(7)) is amended—
(1) in subparagraph (A)—
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(A) by striking ‘‘A household’’ and inserting
the following:
‘‘(i) IN GENERAL.—A household’’; and
(B) by adding at the end the following:
‘‘(ii) INCLUSION
OF
CERTAIN
PAY-
MENTS.—In determining the shelter ex-
penses of a household under this paragraph,
the State agency shall include any required
payment to the landlord of the household
without regard to whether the required pay-
ment is designated to pay specific charges.’’;
and
(2) by adding at the end the following:
‘‘(D) HOMELESS HOUSEHOLDS.—
‘‘(i) 
ALTERNATIVE
DEDUCTION.—In
lieu of the deduction provided under sub-
paragraph (A), a State agency may elect to
allow a household in which all members are
homeless individuals, but that is not receiv-
ing free shelter throughout the month, to re-
ceive a deduction of $143 per month.
‘‘(ii) INELIGIBILITY.—The State agen-
cy may make a household with extremely
low shelter costs ineligible for the alternative
deduction under clause (i).’’.
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(b) CONFORMING AMENDMENTS.—Section 5 of the
Food Stamp Act of 1977 (7 U.S.C. 2014) is amended—
(1) in subsection (e)—
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and
(7) as paragraphs (5) and (6), respectively; and
(2) in subsection (k)(4)(B), by striking ‘‘sub-
section (e)(7)’’ and inserting ‘‘subsection (e)(6)’’.
SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.
Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977
(as amended by section 414(b)(1)(B)) is amended—
(1) in subclause (I)(bb), by inserting ‘‘(without
regard to subclause (III))’’ after ‘‘Secretary finds’’;
and
(2) by adding at the end the following:
‘‘(III) INAPPLICABILITY OF CER-
TAIN
RESTRICTIONS.—Clauses (ii)(II)
and (ii)(III) shall not apply in the
case of a State agency that has made
the use of a standard utility allowance
mandatory under subclause (I).’’.
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SEC. 416. SIMPLIFIED PROCEDURE FOR DETERMINATION
OF EARNED INCOME.
Section 5(f)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2014(f)(1)) is amended by adding at the end the fol-
lowing:
‘‘(C) 
SIMPLIFIED
DETERMINATION
OF
EARNED INCOME.—
‘‘(i) IN
GENERAL.—A State agency
may elect to determine monthly earned in-
come by multiplying weekly income by 4
and biweekly income by 2.
‘‘(ii) ADJUSTMENT OF EARNED INCOME
DEDUCTION.—A State agency that makes
an election described in clause (i) shall ad-
just the earned income deduction under sub-
section (e)(2)(B) to the extent necessary to
prevent the election from resulting in in-
creased costs to the food stamp program, as
determined consistent with standards pro-
mulgated by the Secretary.’’.
SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.
Section 5(f)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2014(f)(1)) (as amended by section 416) is amended
by adding at the end the following:
‘‘(D) SIMPLIFIED DETERMINATION OF DE-
DUCTIONS.—
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‘‘(i) IN GENERAL.—Except as provided
in clause (ii), for the purposes of subsection
(e), a State agency may elect to disregard
until the next redetermination of eligibility
under section 11(e)(4) 1 or more types of
changes in the circumstances of a household
that affect the amount of deductions the
household may claim under subsection (e).
‘‘(ii) CHANGES THAT MAY NOT BE DIS-
REGARDED.—Under clause (i), a State
agency may not disregard—
‘‘(I) any reported change of resi-
dence; or
‘‘(II) under standards prescribed
by the Secretary, any change in earned
income.’’.
SEC. 418. SIMPLIFIED DEFINITION OF RESOURCES.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by adding at the end the following:
‘‘(6) EXCLUSION OF TYPES OF FINANCIAL RE-
SOURCES NOT CONSIDERED UNDER CERTAIN OTHER
FEDERAL PROGRAMS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall promulgate regu-
lations under which a State agency may, at the
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option of the State agency, exclude from finan-
cial resources under this subsection any types of
financial resources that the State agency does
not consider when determining eligibility for—
‘‘(i) cash assistance under a program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); or
‘‘(ii) medical assistance under section
1931 of the Social Security Act (42 U.S.C.
1396u–1).
‘‘(B) 
LIMITATIONS.—Subparagraph 
(A)
does not authorize a State agency to exclude—
‘‘(i) cash;
‘‘(ii) licensed vehicles;
‘‘(iii) amounts in any account in a fi-
nancial institution that are readily avail-
able to the household; or
‘‘(iv) any other similar type of resource
the inclusion in financial resources of which
the Secretary determines by regulation to be
essential to equitable determinations of eli-
gibility under the food stamp program, ex-
cept to the extent that any of those types of
resources are excluded under another para-
graph of this subsection.’’.
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SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.
Section 5(h)(3)(B) of the Food Stamp Act of 1977 (7
U.S.C. 2014(h)(3)(B)) is amended—
(1) in the first sentence, by inserting ‘‘issuance
methods and’’ after ‘‘shall adjust’’; and
(2) in the second sentence, by inserting ‘‘, any
conditions that make reliance on electronic benefit
transfer systems described in section 7(i) impracti-
cable,’’ after ‘‘personnel’’.
SEC. 420. STATE OPTION TO REDUCE REPORTING REQUIRE-
MENTS.
Section 6(c)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(c)(1)) is amended—
(1) in subparagraph (B), by striking ‘‘on a
monthly basis’’; and
(2) by adding at the end the following:
‘‘(D) FREQUENCY OF REPORTING.—
‘‘(i) IN GENERAL.—Except as provided
in subparagraphs (A) and (C), a State
agency may require households that report
on a periodic basis to submit reports—
‘‘(I) not less often than once each
6 months; but
‘‘(II) not more often than once
each month.