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to enforce the natural resources conservation pro-
grams referred to in paragraph (1)(B)(i).
‘‘(B) DISCLOSURE
TO
COOPERATING
PER-
SONS AND AGENCIES.—
‘‘(i) IN GENERAL.—The Secretary may
release or disclose information covered by
paragraph (1) or (2) to a person or Federal,
State, local, or tribal agency working in co-
operation with the Secretary in providing
technical and financial assistance described
in paragraph (1)(B)(i) or collecting infor-
mation from data gathering sites.
‘‘(ii) USE OF INFORMATION.—The per-
son or Federal, State, local, or tribal agency
that receives information described in clause
(i) may release the information only for the
purpose of assisting the Secretary—
‘‘(I) in providing the requested
technical or financial assistance; or
‘‘(II) in collecting information
from data gathering sites.
‘‘(C) STATISTICAL AND AGGREGATE INFOR-
MATION.—Information covered by paragraph (1)
or (2) may be disclosed to the public if the infor-
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mation has been transformed into a statistical or
aggregate form without naming any—
‘‘(i) individual owner, operator, or
producer; or
‘‘(ii) specific data gathering site.
‘‘(D) CONSENT OF OWNER, OPERATOR, OR
PRODUCER.—
‘‘(i) IN
GENERAL.—An owner, oper-
ator, or producer may consent to the disclo-
sure of information described in paragraph
(1) or (2).
‘‘(ii) CONDITION
OF
OTHER
PRO-
GRAMS.—The participation of the owner,
operator, or producer in, and the receipt of
any benefit by the owner, operator, or pro-
ducer under, this title or any other program
administered by the Secretary may not be
conditioned on the owner, operator, or pro-
ducer providing consent under this para-
graph.
‘‘(4) VIOLATIONS; PENALTIES.—Section 1770(c)
shall apply with respect to the release of information
collected in any manner or for any purpose prohib-
ited by this subsection.
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‘‘(5) DATA COLLECTION, DISCLOSURE, AND RE-
VIEW.—Nothing in this subsection—
‘‘(A) affects any procedure for data collec-
tion or disclosure through the National Resources
Inventory; or
‘‘(B) limits the authority of Congress or the
General Accounting Office to review information
collected or disclosed under this subsection.
‘‘(h) INDIAN TRIBES.—In carrying out any conserva-
tion program administered by the Secretary on land under
the jurisdiction of an Indian tribe (as defined in section
1238), the Secretary shall cooperate with the tribal govern-
ment of the Indian tribe to ensure, to the maximum extent
practicable, that the program is administered in a fair and
equitable manner.’’.
SEC. 205. REFORM AND ASSESSMENT OF CONSERVATION
PROGRAMS.
(a) IN GENERAL.—The Secretary of Agriculture shall
develop a plan for—
(1) coordinating conservation programs adminis-
tered by the Secretary that are targeted at agricul-
tural land to—
(A) eliminate redundancy; and
(B) improve delivery;
(2) to the maximum extent practicable—
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(A) designing forms that are applicable to
all conservation programs administered by the
Secretary;
(B) reducing and consolidating paperwork
requirements for the programs;
(C) developing universal classification sys-
tems for all information obtained on the forms
that can be used by other agencies of the Depart-
ment of Agriculture;
(D) ensuring that the information and clas-
sification systems developed under this para-
graph can be shared with other agencies of the
Department through computer technologies used
by agencies; and
(E) developing 1 format for a conservation
plan that can be applied to all conservation pro-
grams targeted at agricultural land;
(3) to the maximum extent practicable, improv-
ing the delivery of conservation programs to Indian
tribes (as defined in section 4 of the Indian Self-De-
termination and Education Assistance Act (25 U.S.C.
450b)), including programs for the delivery of con-
servation programs to Indian tribes under plans car-
ried out in conjunction with the Secretary of the Inte-
rior; and
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(4) improving the regional distribution of pro-
gram funds and resources to ensure, to the maximum
extent practicable, that—
(A) the highest conservation priorities of the
United States receive funding; and
(B) regional variations in conservation
costs are taken into account.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes the
plan developed under subsection (a), including any rec-
ommendations for implementation of the plan.
(c) NATIONAL CONSERVATION PLAN.—
(1) IN GENERAL.—Not later than 180 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 plan and estimated budget for implementing
the appraisal of the soil, water, and related resources
of the United States contained in the national con-
servation program under sections 5 and 6 of the Soil
and Water Resources Conservation Act of 1977 (16
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U.S.C. 2004, 2005) as the primary vehicle for man-
aging conservation on agricultural land in the United
States.
(2) REPORT
ON
IMPLEMENTATION.—Not later
than April 30, 2005, the Secretary shall submit to the
Committee on Agriculture of the House of Representa-
tives and Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that—
(A) describes the status of the implementa-
tion of the plan described in paragraph (1);
(B) contains an evaluation of the scope,
quality, and outcomes of the conservation prac-
tices carried out under the plan; and
(C) makes recommendations for achieving
specific and quantifiable improvements for the
purposes of programs covered by the plan.
(d) CONSERVATION PRACTICE STANDARDS.—The Sec-
retary of Agriculture shall—
(1) revise standards and, if necessary, establish
standards, for eligible conservation practices to in-
clude measurable goals for enhancing natural re-
sources, including innovative practices;
(2) not later than 180 days after the date of en-
actment of this Act, revise the National Handbook of
Conservation Practices and field office technical
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guides of the Natural Resources Conservation Service;
and
(3) not less frequently than once every 5 years,
update the Handbook and technical guides.
SEC. 206. CONSERVATION SECURITY PROGRAM REGULA-
TIONS.
Beginning on the date of enactment of this Act, the
Secretary of Agriculture may promulgate regulations and
carry out other actions relating to the implementation of
the conservation security program under subchapter A of
chapter 2 of subtitle D of title XII of the Food Security
Act of 1985 (as added by section 201).
SEC. 207. CONFORMING AMENDMENTS.
(a) Chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended
in the chapter heading by striking ‘‘ENVIRON-
MENTAL CONSERVATION ACREAGE RE-
SERVE 
PROGRAM’’ 
and 
inserting 
‘‘COM-
PREHENSIVE CONSERVATION ENHANCE-
MENT PROGRAM’’.
(b) Section 1230 of the Food Security Act of 1985 (16
U.S.C. 3830) is amended—
(1) in the section heading, by striking ‘‘ENVI-
RONMENTAL
CONSERVATION
ACREAGE
RE-
SERVE PROGRAM’’ and inserting ‘‘COMPREHEN-
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SIVE
CONSERVATION
ENHANCEMENT
PRO-
GRAM’’;
(2) in subsection (a)(1), by striking ‘‘an environ-
mental conservation acreage reserve program’’ and
inserting ‘‘a comprehensive conservation enhancement
program’’; and
(3) by striking ‘‘ECARP’’ each place it appears
and inserting ‘‘CCEP’’.
(c) Section 1230A of the Food Security Act of 1985
(16 U.S.C. 3830a) is repealed.
(d) Section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) is amended by striking the section heading
and inserting the following:
‘‘SEC. 1243. ADMINISTRATION OF CCEP.’’.
Subtitle B—Program Extensions
SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT
PROGRAM.
(a) IN GENERAL.—Section 1230(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3830(a)) is amended—
(1) in paragraph (1), by striking ‘‘2002’’ and in-
serting ‘‘2006’’; and
(2) in paragraph (3)—
(A) in subparagraph (B), by striking ‘‘and’’
at the end; and
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(B) by striking subparagraph (C) and in-
serting the following:
‘‘(C) the grassland reserve program estab-
lished under subchapter C of chapter 2;
‘‘(D) the environmental quality incentives
program established under chapter 4;
‘‘(E) the wildlife habitat incentive program
established under section 1240M; and
‘‘(F) the program for conservation of pri-
vate grazing land established under section
1240P.’’.
(b) PRIORITY.—Section 1230(c) of the Food Security
Act of 1985 (16 U.S.C. 3830(c)) is amended by adding at
the end the following:
‘‘(4) PRIORITY.—In designating conservation
priority areas under paragraph (1), the Secretary
shall give priority to areas in which designated land
would facilitate the most rapid completion of projects
that—
‘‘(A) are ongoing as of the date of the appli-
cation; and
‘‘(B) meet the purposes of a program estab-
lished under this title.’’.
(c) FUNDING.—Section 1241(a) of the Food Security
Act of 1985 (16 U.S.C. 3841(a)) is amended—
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(1) by striking ‘‘2002’’ and inserting ‘‘2006’’;
(2) by inserting ‘‘(including the provision of
technical assistance)’’ after ‘‘the programs’’;
(3) in paragraph (2)—
(A) by striking ‘‘subchapter C’’ and insert-
ing ‘‘subchapters C and D’’; and
(B) by striking ‘‘and’’ at the end;
(4) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(5) by adding at the end the following:
‘‘(4) chapter 6 of subtitle D.’’.
SEC. 212. CONSERVATION RESERVE PROGRAM.
(a) REAUTHORIZATION.—
(1) IN GENERAL.—Section 1231 of the Food Se-
curity Act of 1985 (16 U.S.C. 3831) is amended in
subsections (a), (b)(3), and (d), by striking ‘‘2002’’
each place it appears and inserting ‘‘2006’.
(2) DUTIES OF OWNERS AND OPERATORS.—Sec-
tion 1232(c) of the Food Security Act of 1985 (16
U.S.C. 3832(c)) is amended by striking ‘‘2002’’ and
inserting ‘‘2006’’.
(b) CONSERVATION PRIORITY AREAS.—
(1) ELIGIBILITY.—Section 1231(b) of the Food
Security Act of 1985 (16 U.S.C. 3831(b)) is
amended—
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(A) by striking paragraph (1) and inserting
the following:
‘‘(1) highly erodible cropland that—
‘‘(A)(i) if permitted to remain untreated
could substantially reduce the production capa-
bility for future generations; or
‘‘(ii) cannot be farmed in accordance with
a conservation plan that complies with the re-
quirements of subtitle B; and
‘‘(B) the Secretary determines had a crop-
ping history or was considered to be planted for
3 of the 6 years preceding the date of enactment
of the Agriculture, Conservation, and Rural En-
hancement Act of 2002 (except for land enrolled
in the conservation reserve program as of that
date);’’; and
(B) by adding at the end the following:
‘‘(5) the portion of land in a field not enrolled
in the conservation reserve in a case in which more
than 50 percent of the land in the field is enrolled as
a buffer under a program described in paragraph
(6)(A), if the land is enrolled as part of the buffer;
and
‘‘(6) land (including land that is not cropland)
enrolled through continuous signup—
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‘‘(A) to establish conservation buffers as
part of the program described in a notice issued
on March 24, 1998 (63 Fed. Reg. 14109) or a
successor program; or
‘‘(B) into the conservation reserve enhance-
ment program described in a notice issued on
May 27, 1998 (63 Fed. Reg. 28965) or a suc-
cessor program.’’.
(2) CRP PRIORITY AREAS.—Section 1231(f) of
the Food Security Act of 1985 (16 U.S.C. 3831(f)) is
amended by adding at the end the following:
‘‘(5) PRIORITY.—In designating conservation
priority areas under paragraph (1), the Secretary
shall give priority to areas in which designated land
would facilitate the most rapid completion of projects
that—
‘‘(A) are ongoing as of the date of the appli-
cation; and
‘‘(B) meet the purposes of the program es-
tablished under this subchapter.’’.
(c) MAXIMUM ENROLLMENT.—Section 1231(d) of the
Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended
by striking ‘‘36,400,000’’ and inserting ‘‘41,100,000’’.
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(d) DURATION OF CONTRACTS; HARDWOOD TREES.—
Section 1231(e) of the Food Security Act of 1985 (16 U.S.C.
3831(e)) is amended—
(1) in paragraph (1), by striking ‘‘For the pur-
pose: and inserting ‘‘Except as provided in paragraph
(2)(D), for the purpose’’;
(2) in paragraph (2)—
(A) by striking ‘‘In the’’ and inserting the
following:
‘‘(A) IN GENERAL.—In the’’;
(B) by striking ‘‘The Secretary’’ and insert-
ing the following:
‘‘(B) EXISTING
HARDWOOD
TREE
CON-
TRACTS.—The Secretary’’; and
(C) by adding at the end the following:
‘‘(C) EXTENSION OF HARDWOOD TREE CON-
TRACTS.—
‘‘(i) IN GENERAL.—In the case of land
devoted to hardwood trees under a contract
entered into under this subchapter before the
date of enactment of this subparagraph, the
Secretary may extend the contract for a
term of not more than 15 years.
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‘‘(ii) RENTAL PAYMENTS.—The amount
of a rental payment for a contract extended
under clause (i)—
‘‘(I) shall be determined by the
Secretary; but
‘‘(II) shall not exceed 50 percent
of the rental payment that was appli-
cable to the contract before the contract
was extended.
‘‘(D) NEW HARDWOOD TREE CONTRACTS.—
‘‘(i) IN GENERAL.—The Secretary may
enter into contracts of not less than 10, nor
more than 30, years with owners of land in-
tended to be devoted to hardwood trees after
the date of enactment of this paragraph.
‘‘(ii) PAYMENTS.—The Secretary shall
make payments under a contract described
in clause (i)—
‘‘(I) on an annual basis; and
‘‘(II) at such an appropriate rate
and in such appropriate amounts as
the Secretary shall determine in ac-
cordance with subparagraph (C)(ii).
‘‘(E) HARDWOOD
PLANNING
GOAL.—The
Secretary shall take such steps as the Secretary
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determines are necessary to ensure, to the max-
imum extent practicable, that all hardwood tree
sites annually enrolled in the conservation re-
serve program are reforested with appropriate
species.’’; and
(3) by adding at the end the following:
‘‘(3) 1-YEAR EXTENSION.—In the case of a con-
tract described in paragraph (1) the term of which ex-
pires during calendar year 2002, an owner or oper-
ator of land enrolled under the contract may extend
the contract for 1 additional year.’’.
(e) PILOT PROGRAM FOR ENROLLMENT OF WETLAND
AND BUFFER ACREAGE IN CONSERVATION RESERVE.—Sec-
tion 1231(h) of the Food Security Act of 1985 (16 U.S.C.
3831(h)) is amended—
(1) in the subsection heading, by striking
‘‘PILOT’’;
(2) in paragraph (1), by striking ‘‘During the
2001 and 2002 calendar years, the Secretary shall
carry out a pilot program’’ and inserting ‘‘During
the 2002 through 2006 calendar years, the Secretary
shall carry out a program’’;
(3) in paragraph (2), by striking ‘‘pilot’’; and
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(4) in paragraph (3)(D)(i), by striking ‘‘5 con-
tiguous acres.’’ and inserting ‘‘10 contiguous acres, of
which—
‘‘(I) not more than 5 acres shall
be eligible for payment; and
‘‘(II) all acres (including acres
that are ineligible for payment) shall
be covered by the conservation con-
tract.’’.
(f) IRRIGATED LAND.—Section 1231 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831) is amended by adding
at the end the following:
‘‘(i) IRRIGATED LAND.—Irrigated land shall be en-
rolled in the programs described in subsection (b)(6) at irri-
gated land rates unless the Secretary determines that other
compensation is appropriate.’’.
(g) VEGETATIVE COVER; HAYING AND GRAZING; WIND
TURBINES.—Section 1232(a) of the Food Security Act of
1985 (16 U.S.C. 3832(a)) is amended—
(1) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘and’’
at the end;
(B) in subparagraph (B), by inserting
‘‘and’’ after the semicolon at the end; and
(C) by adding at the end the following:
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‘‘(C) in the case of marginal pasture land,
an owner or operator shall not be required to
plant trees if the land is to be restored—
‘‘(i) as wetland; or
‘‘(ii) with appropriate native riparian
vegetation;’’;
(2) in paragraph (7)—
(A) by striking ‘‘except that the Secretary—
’’ and inserting ‘‘except that—’’;
(B) in subparagraph (A)—
(i) by striking ‘‘(A) may’’ and insert-
ing ‘‘(A) the Secretary may’’; and
(ii) by striking ‘‘and’’ at the end;
(C) in subparagraph (B)—
(i) by striking ‘‘(B) shall’’ and insert-
ing ‘‘(B) the Secretary shall’’; and
(ii) by striking the period at the end
and inserting a semicolon;
(D) in subparagraph (C), by striking the
period at the end and inserting ‘‘; and’’; and
(E) by adding at the end the following:
‘‘(D) for maintenance purposes, the Sec-
retary may permit harvesting or grazing or
other commercial uses of forage, in a manner
that is consistent with the purposes of this sub-
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chapter and a conservation plan approved by the
Secretary, on acres enrolled—
‘‘(i) to establish conservation buffers as
part of the program described in a notice
issued on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; and
‘‘(ii) into the conservation reserve en-
hancement program described in a notice
issued on May 27, 1998 (63 Fed. Reg.
28965) or a successor program.’’;
(3) in paragraph (9), by striking ‘‘and’’ at the
end;
(4) by redesignating paragraph (10) as para-
graph (11); and
(5) by inserting after paragraph (9) the fol-
lowing:
‘‘(10) with respect to any contract entered into
after the date of enactment of the Agriculture, Con-
servation, and Rural Enhancement Act of 2002—
‘‘(A) not to produce a crop for the duration
of the contract on any other highly erodible land
that the owner or operator owns unless the high-
ly erodible land—
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‘‘(i) has a history of being used to
produce a crop other than a forage crop, as
determined by the Secretary; or
‘‘(ii) is being used as a homestead or
building site at the time of purchase; and
‘‘(B) on a violation of a contract described
in subparagraph (A), to be subject to the require-
ments of paragraph (5); and’’.
(h) WIND TURBINES.—Section 1232 of the Food Secu-
rity Act of 1985 (8906 U.S.C. 3832) is amended by adding
at the end the following:
‘‘(f) WIND TURBINES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary may permit an owner or operator of land
that is enrolled in the conservation reserve program,
but that is not enrolled under continuous signup (as
described in section 1231(b)(6)), to install wind tur-
bines on the land.
‘‘(2) NUMBER; LOCATION.—The Secretary shall
determine the number and location of wind turbines
that may be installed on a tract of land under para-
graph (1), taking into account—
‘‘(A) the location, size, and other physical
characteristics of the land;
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‘‘(B) the extent to which the land contains
wildlife and wildlife habitat; and
‘‘(C) the purposes of the conservation reserve
program.
‘‘(3) PAYMENT
LIMITATION.—Notwithstanding
the amount of a rental payment limited by section
1234(c)(2) and specified in a contract entered into
under this chapter, the Secretary shall reduce the
amount of the rental payment paid to an owner or
operator of land on which 1 or more wind turbines
are installed under this subsection by an amount de-
termined by the Secretary to be commensurate with
the value of the reduction of benefit gained by enroll-
ment of the land in the conservation reserve pro-
gram.’’.
(i) ADDITIONAL ELIGIBLE PRACTICES.—Section 1234
of the Food Security Act of 1985 (16 U.S.C. 3834) is
amended by adding at the end the following:
‘‘(i) PAYMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall provide signing and practice incentive
payments under the conservation reserve program to
owners and operators that implement a practice
under—
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‘‘(A) the program to establish conservation
buffers described in a notice issued on March 24,
1998 (63 Fed. Reg. 14109) or a successor pro-
gram; or
‘‘(B) the conservation reserve enhancement
program described in a notice issued on May 27,
1998 (63 Fed. Reg. 28965) or a successor pro-
gram.
‘‘(2) OTHER
PRACTICES.—The Secretary shall
administer paragraph (1) in a manner that does not
reduce the amount of payments made by the Sec-
retary for other practices under the conservation re-
serve program.’’.
(j) PAYMENTS.—Section 1239C(f) of the Food Security
Act of 1985 (16 U.S.C. 3839c(f)) is amended by adding at
the end the following:
‘‘(5) EXCEPTION.—Paragraph (1) shall not
apply to any land enrolled in—
‘‘(A) the program to establish conservation
buffers described in a notice issued on March 24,
1998 (63 Fed. Reg. 14109) or a successor pro-
gram; or
‘‘(B) the conservation reserve enhancement
program described in a notice issued on May 27,
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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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(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.