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‘‘(c) BIOMASS
RESEARCH
AND
DEVELOPMENT 
BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Biomass Research and Development Board to 
carry out the duties described in paragraph (3). 
‘‘(2) MEMBERSHIP.—The Board shall consist 
of— 
‘‘(A) the point of contacts of the Depart-
ment of Energy and the Department of Agri-
culture, who shall serve as cochairpersons of the 
Board; 
‘‘(B) a senior officer of each of the Depart-
ment of the Interior, the Environmental Protec-
tion Agency, the National Science Foundation, 
and the Office of Science and Technology Pol-
icy, each of whom shall have a rank that is 
equivalent to the rank of the points of contact; 
and 
‘‘(C) at the option of the Secretary of Ag-
riculture and the Secretary of Energy, other 
members appointed by the Secretaries (after 
consultation with the Board). 
‘‘(3) DUTIES.—The Board shall— 
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‘‘(A) coordinate research and development 
activities relating to biofuels and biobased prod-
ucts— 
‘‘(i) between the Department of Agri-
culture and the Department of Energy; 
and 
‘‘(ii) with other departments and 
agencies of the Federal Government; 
‘‘(B) provide recommendations to the 
points of contact concerning administration of 
this title; 
‘‘(C) ensure that— 
‘‘(i) solicitations are open and com-
petitive with awards made annually; and 
‘‘(ii) objectives and evaluation criteria 
of the solicitations are clearly stated and 
minimally prescriptive, with no areas of 
special interest; and 
‘‘(D) ensure that the panel of scientific 
and technical peers assembled under subsection 
(e) to review proposals is composed predomi-
nantly of independent experts selected from out-
side the Departments of Agriculture and En-
ergy. 
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‘‘(4) FUNDING.—Each agency represented on 
the Board is encouraged to provide funds for any 
purpose under this section. 
‘‘(5) MEETINGS.—The Board shall meet at 
least quarterly. 
‘‘(d) BIOMASS
RESEARCH
AND
DEVELOPMENT 
TECHNICAL ADVISORY COMMITTEE.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Biomass Research and Development Technical 
Advisory Committee to carry out the duties de-
scribed in paragraph (3). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The Advisory Com-
mittee shall consist of— 
‘‘(i) an individual affiliated with the 
biofuels industry; 
‘‘(ii) an individual affiliated with the 
biobased industrial and commercial prod-
ucts industry; 
‘‘(iii) an individual affiliated with an 
institution of higher education who has ex-
pertise in biofuels and biobased products; 
‘‘(iv) 2 prominent engineers or sci-
entists from government or academia who 
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have expertise in biofuels and biobased 
products; 
‘‘(v) an individual affiliated with a 
commodity trade association; 
‘‘(vi) 2 individuals affiliated with envi-
ronmental or conservation organizations; 
‘‘(vii) an individual associated with 
State government who has expertise in 
biofuels and biobased products; 
‘‘(viii) an individual with expertise in 
energy and environmental analysis; 
‘‘(ix) an individual with expertise in 
the economics of biofuels and biobased 
products; 
‘‘(x) an individual with expertise in 
agricultural economics; 
‘‘(xi) an individual with expertise in 
plant biology and biomass feedstock devel-
opment; 
‘‘(xii) an individual with expertise in 
agronomy, crop science, or soil science; and 
‘‘(xiii) at the option of the points of 
contact, other members. 
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‘‘(B) APPOINTMENT.—The members of the 
Advisory Committee shall be appointed by the 
points of contact. 
‘‘(3) 
DUTIES.—The 
Advisory 
Committee 
shall— 
‘‘(A) advise the points of contact with re-
spect to the Initiative; and 
‘‘(B) evaluate and make recommendations 
in writing to the Board regarding whether— 
‘‘(i) funds authorized for the Initiative 
are distributed and used in a manner that 
is consistent with the objectives, purposes, 
and considerations of the Initiative; 
‘‘(ii) solicitations are open and com-
petitive with awards made annually; 
‘‘(iii) objectives and evaluation criteria 
of the solicitations are clearly stated and 
minimally prescriptive, with no areas of 
special interest; 
‘‘(iv) the points of contact are funding 
proposals under this title that are selected 
on the basis of merit, as determined by an 
independent panel of scientific and tech-
nical peers predominantly from outside the 
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Departments of Agriculture and Energy; 
and 
‘‘(v) activities under this title are car-
ried out in accordance with this title. 
‘‘(4) COORDINATION.—To avoid duplication of 
effort, the Advisory Committee shall coordinate its 
activities with those of other Federal advisory com-
mittees working in related areas. 
‘‘(5) MEETINGS.—The Advisory Committee 
shall meet at least quarterly. 
‘‘(6) TERMS.—Members of the Advisory Com-
mittee shall be appointed for a term of 3 years. 
‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT INI-
TIATIVE.— 
‘‘(1) IN
GENERAL.—The Secretary of Agri-
culture and the Secretary of Energy, acting through 
their respective points of contact and in consultation 
with the Board, shall establish and carry out a Bio-
mass Research and Development Initiative under 
which competitively awarded grants, contracts, and 
financial assistance are provided to, or entered into 
with, eligible entities to carry out research on and 
development and demonstration of— 
‘‘(A) biofuels and biobased products; and 
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‘‘(B) the methods, practices, and tech-
nologies, for the production of biofuels and 
biobased products. 
‘‘(2) OBJECTIVES.—The objectives of the Initia-
tive are to develop— 
‘‘(A) technologies and processes necessary 
for abundant commercial production of biofuels 
at prices competitive with fossil fuels; 
‘‘(B) high-value biobased products— 
‘‘(i) to enhance the economic viability 
of biofuels and power; 
‘‘(ii) to serve as substitutes for petro-
leum-based feedstocks and products; and 
‘‘(iii) to enhance the value of coprod-
ucts produced using the technologies and 
processes; and 
‘‘(C) a diversity of economically and envi-
ronmentally sustainable domestic sources of re-
newable biomass for conversion to biofuels, bio-
energy, and biobased products. 
‘‘(3) TECHNICAL AREAS.—The Secretary of Ag-
riculture and the Secretary of Energy, in consulta-
tion with the Administrator of the Environmental 
Protection Agency and heads of other appropriate 
departments and agencies (referred to in this sub-
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section as the ‘Secretaries’), shall direct the Initia-
tive in the 3 following areas: 
‘‘(A) FEEDSTOCKS
DEVELOPMENT.—Re-
search, development, and demonstration activi-
ties regarding feedstocks and feedstock logistics 
(including the harvest, handling, transport, 
preprocessing, and storage) relevant to produc-
tion of raw materials for conversion to biofuels 
and biobased products. 
‘‘(B) BIOFUELS AND BIOBASED PRODUCTS 
DEVELOPMENT.—Research, development, and 
demonstration activities to support— 
‘‘(i) the development of diverse cost- 
effective technologies for the use of cel-
lulosic biomass in the production of 
biofuels and biobased products; and 
‘‘(ii) product diversification through 
technologies relevant to production of a 
range of biobased products (including 
chemicals, animal feeds, and cogenerated 
power) that potentially can increase the 
feasibility of fuel production in a bio-
refinery. 
‘‘(C) 
BIOFUELS
DEVELOPMENT
ANAL-
YSIS.— 
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‘‘(i) STRATEGIC GUIDANCE.—The de-
velopment of analysis that provides stra-
tegic guidance for the application of renew-
able biomass technologies to improve sus-
tainability and environmental quality, cost 
effectiveness, security, and rural economic 
development. 
‘‘(ii) ENERGY
AND
ENVIRONMENTAL 
IMPACT.—Development of systematic eval-
uations of the impact of expanded biofuel 
production on the environment (including 
forest land) and on the food supply for hu-
mans and animals, including the improve-
ment and development of tools for life 
cycle analysis of current and potential 
biofuels. 
‘‘(iii) 
ASSESSMENT
OF
FEDERAL 
LAND.—Assessments of the potential of 
Federal land resources to increase the pro-
duction of feedstocks for biofuels and 
biobased products, consistent with the in-
tegrity of soil and water resources and 
with other environmental considerations. 
‘‘(4) ADDITIONAL
CONSIDERATIONS.—Within 
the technical areas described in paragraph (3), the 
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Secretaries shall support research and develop-
ment— 
‘‘(A) to create continuously expanding op-
portunities for participants in existing biofuels 
production by seeking synergies and continuity 
with current technologies and practices; 
‘‘(B) to maximize the environmental, eco-
nomic, and social benefits of production of 
biofuels and derived biobased products on a 
large scale; and 
‘‘(C) to facilitate small-scale production 
and local and on-farm use of biofuels, including 
the development of small-scale gasification tech-
nologies for production of biofuel from cellulosic 
feedstocks. 
‘‘(5) ELIGIBILITY.—To be eligible for a grant, 
contract, or assistance under this section, an appli-
cant shall be— 
‘‘(A) an institution of higher education; 
‘‘(B) a National Laboratory; 
‘‘(C) a Federal research agency; 
‘‘(D) a State research agency; 
‘‘(E) a private sector entity; 
‘‘(F) a nonprofit organization; or 
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‘‘(G) a consortium of 2 or more entities de-
scribed in subparagraphs (A) through (F). 
‘‘(6) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—After consultation 
with the Board, the points of contact shall— 
‘‘(i) publish annually 1 or more joint 
requests for proposals for grants, con-
tracts, and assistance under this sub-
section; 
‘‘(ii) require that grants, contracts, 
and assistance under this section be 
awarded based on a scientific peer review 
by an independent panel of scientific and 
technical peers; 
‘‘(iii) give special consideration to ap-
plications that— 
‘‘(I) involve a consortia of experts 
from multiple institutions; 
‘‘(II) encourage the integration 
of disciplines and application of the 
best technical resources; and 
‘‘(III) increase the geographic di-
versity of demonstration projects; and 
‘‘(iv) require that the technical areas 
described in each of subparagraphs (A), 
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(B), and (C) of paragraph (3) receive not 
less than 15 percent of funds made avail-
able to carry out this section. 
‘‘(B) COST SHARE.— 
‘‘(i) RESEARCH
AND
DEVELOPMENT 
PROJECTS.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the non- 
Federal share of the cost of a re-
search or development project under 
this section shall be not less than 20 
percent. 
‘‘(II) 
REDUCTION.—The 
Sec-
retary of Agriculture or the Secretary 
of Energy, as appropriate, may reduce 
the non-Federal share required under 
subclause (I) if the appropriate Sec-
retary determines the reduction to be 
necessary and appropriate. 
‘‘(ii) DEMONSTRATION AND COMMER-
CIAL
PROJECTS.—The non-Federal share 
of the cost of a demonstration or commer-
cial project under this section shall be not 
less than 50 percent. 
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‘‘(C) TECHNOLOGY
AND
INFORMATION 
TRANSFER.—The Secretary of Agriculture and 
the Secretary of Energy shall ensure that appli-
cable research results and technologies from the 
Initiative are— 
‘‘(i) adapted, made available, and dis-
seminated, as appropriate; and 
‘‘(ii) included in the best practices 
database 
established 
under 
section 
1672C(e) of the Food, Agriculture, Con-
servation, and Trade Act of 1990. 
‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary of Energy 
and the Secretary of Agriculture may provide such 
administrative support and funds of the Department 
of Energy and the Department of Agriculture to the 
Board and the Advisory Committee as are necessary 
to enable the Board and the Advisory Committee to 
carry out their duties under this section. 
‘‘(2) OTHER
AGENCIES.—The heads of the 
agencies referred to in subsection (c)(2)(B), and the 
other members of the Board appointed under sub-
section (c)(2)(C), are encouraged to provide adminis-
trative support and funds of their respective agen-
cies to the Board and the Advisory Committee. 
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‘‘(3) LIMITATION.—Not more than 4 percent of 
the amount made available for each fiscal year under 
subsection (h) may be used to pay the administrative 
costs of carrying out this section. 
‘‘(g) REPORTS.—For each fiscal year for which funds 
are made available to carry out this section, the Secretary 
of Energy and the Secretary of Agriculture shall jointly 
submit to Congress a detailed report on— 
‘‘(1) the status and progress of the Initiative, 
including a report from the Advisory Committee on 
whether funds appropriated for the Initiative have 
been distributed and used in a manner that is con-
sistent with the objectives and requirements of this 
section; 
‘‘(2) the general status of cooperation and re-
search and development efforts carried out at each 
agency with respect to biofuels and biobased prod-
ucts; and 
‘‘(3) the plans of the Secretary of Energy and 
the Secretary of Agriculture for addressing concerns 
raised in the report, including concerns raised by the 
Advisory Committee. 
‘‘(h) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary of 
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Agriculture shall use to carry out this section, to re-
main available until expended— 
‘‘(A) $20,000,000 for fiscal year 2009; 
‘‘(B) $28,000,000 for fiscal year 2010; 
‘‘(C) $30,000,000 for fiscal year 2011; and 
‘‘(D) $40,000,000 for fiscal year 2012. 
‘‘(2) DISCRETIONARY FUNDING.—In addition to 
any other funds made available to carry out this sec-
tion, there is authorized to be appropriated to carry 
out this section $35,000,000 for each of fiscal years 
2009 through 2012. 
‘‘SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE RURAL COMMUNITY.—The term 
‘eligible rural community’ means a community lo-
cated in a rural area (as defined in section 
343(a)(13)(A) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(13)(A))). 
‘‘(2) INITIATIVE.—The term ‘Initiative’ means 
the Rural Energy Self-Sufficiency Initiative estab-
lished under this section. 
‘‘(3) INTEGRATED
RENEWABLE
ENERGY
SYS-
TEM.—The term ‘integrated renewable energy sys-
tem’ means a community-wide energy system that— 
‘‘(A) reduces conventional energy use; and 
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‘‘(B) increases the use of energy from re-
newable sources. 
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish a Rural Energy Self-Sufficiency Initiative to provide 
financial assistance for the purpose of enabling eligible 
rural communities to substantially increase the energy 
self-sufficiency of the eligible rural communities. 
‘‘(c) GRANT ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
grants available under the Initiative to eligible rural 
communities to carry out an activity described in 
paragraph (2). 
‘‘(2) USE OF GRANT FUNDS.—An eligible rural 
community may use a grant— 
‘‘(A) to conduct an energy assessment that 
assesses the total energy use of all energy users 
in the eligible rural community; 
‘‘(B) to formulate and analyze ideas for re-
ducing energy usage by the eligible rural com-
munity from conventional sources; and 
‘‘(C) to develop and install an integrated 
renewable energy system. 
‘‘(3) GRANT SELECTION.— 
‘‘(A) APPLICATION.—To be considered for 
a grant, an eligible rural community shall sub-
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mit an application to the Secretary that de-
scribes the ways in which the community would 
use the grant to carry out an activity described 
in paragraph (2). 
‘‘(B) PREFERENCE.—The Secretary shall 
give preference to those applications that pro-
pose to carry out an activity in coordination 
with— 
‘‘(i) institutions of higher education or 
nonprofit foundations of institutions of 
higher education; 
‘‘(ii) Federal, State, or local govern-
ment agencies; 
‘‘(iii) public or private power genera-
tion entities; or 
‘‘(iv) government entities with respon-
sibility for water or natural resources. 
‘‘(4) REPORT.—An eligible rural community re-
ceiving a grant under the Initiative shall submit to 
the Secretary a report on the project of the eligible 
rural community. 
‘‘(5) COST-SHARING.—The amount of a grant 
under the Initiative shall not exceed 50 percent of 
the cost of the activities described in the application. 
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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$5,000,000 for each of fiscal years 2009 through 2012. 
‘‘SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO-
ENERGY PRODUCERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIOENERGY.—The term ‘bioenergy’ means 
fuel grade ethanol and other biofuel. 
‘‘(2) BIOENERGY PRODUCER.—The term ‘bio-
energy producer’ means a producer of bioenergy that 
uses an eligible commodity to produce bioenergy 
under this section. 
‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible 
commodity’ means a form of raw or refined sugar or 
in-process sugar that is eligible to be marketed in 
the United States for human consumption or to be 
used for the extraction of sugar for human consump-
tion. 
‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means an entity located in the United States 
that markets an eligible commodity in the United 
States. 
‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 
‘‘(1) IN GENERAL.— 
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‘‘(A) PURCHASES AND SALES.—For each 
of the 2008 through 2012 crops, the Secretary 
shall purchase eligible commodities from eligible 
entities and sell such commodities to bioenergy 
producers for the purpose of producing bio-
energy in a manner that ensures that section 
156 of the Federal Agriculture Improvement 
and Reform Act (7 U.S.C. 7272) is operated at 
no cost to the Federal Government by avoiding 
forfeitures to the Commodity Credit Corpora-
tion. 
‘‘(B) COMPETITIVE PROCEDURES.—In car-
rying out the purchases and sales required 
under subparagraph (A), the Secretary shall, to 
the maximum extent practicable, use competi-
tive procedures, including the receiving, offer-
ing, and accepting of bids, when entering into 
contracts with eligible entities and bioenergy 
producers, provided that such procedures are 
consistent with the purposes of subparagraph 
(A). 
‘‘(C) LIMITATION.—The purchase and sale 
of eligible commodities under subparagraph (A) 
shall only be made in crop years in which such 
purchases and sales are necessary to ensure 
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that the program authorized under section 156 
of the Federal Agriculture Improvement and 
Reform Act (7 U.S.C. 7272) is operated at no 
cost to the Federal Government by avoiding for-
feitures to the Commodity Credit Corporation. 
‘‘(2) NOTICE.— 
‘‘(A) IN GENERAL.—As soon as practicable 
after the date of enactment of the Food, Con-
servation, and Energy Act of 2008 and each 
September 1 thereafter through September 1, 
2012, the Secretary shall provide notice to eligi-
ble entities and bioenergy producers of the 
quantity of eligible commodities that shall be 
made available for purchase and sale for the 
crop year following the date of the notice under 
this section. 
‘‘(B) REESTIMATES.—Not later than the 
January 1, April 1, and July 1 of the calendar 
year following the date of a notice under sub-
paragraph (A), the Secretary shall reestimate 
the quantity of eligible commodities determined 
under subparagraph (A), and provide notice 
and make purchases and sales based on such 
reestimates. 
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‘‘(3) COMMODITY CREDIT CORPORATION INVEN-
TORY.— 
‘‘(A) DISPOSITIONS.— 
‘‘(i) BIOENERGY AND GENERALLY.— 
Except as provided in clause (ii), to the ex-
tent that an eligible commodity is owned 
and held in inventory by the Commodity 
Credit Corporation (accumulated pursuant 
to the program authorized under section 
156 of the Federal Agriculture Improve-
ment and Reform Act (7 U.S.C. 7272)), 
the Secretary shall— 
‘‘(I) sell the eligible commodity to 
bioenergy producers under this section 
consistent with paragraph (1)(C); 
‘‘(II) dispose of the eligible com-
modity in accordance with section 
156(f)(2) of that Act; or 
‘‘(III) otherwise dispose of the el-
igible commodity through the buyback 
of certificates of quota entry. 
‘‘(ii) PRESERVATION
OF
OTHER
AU-
THORITIES.—Nothing in this section limits 
the use of other authorities for the disposi-
tion of an eligible commodity held in the 
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inventory of the Commodity Credit Cor-
poration for nonfood use or otherwise in a 
manner that does not increase the net 
quantity of sugar available for human con-
sumption in the United States market, 
consistent with section 156(f)(1) of the 
Federal Agriculture Improvement and Re-
form Act (7 U.S.C. 7272(f)(1)). 
‘‘(B) EMERGENCY SHORTAGES.—Notwith-
standing subparagraph (A), if there is an emer-
gency shortage of sugar for human consumption 
in the United States market that is caused by 
a war, flood, hurricane, or other natural dis-
aster, or other similar event, the Secretary may 
dispose of an eligible commodity that is owned 
and held in inventory by the Commodity Credit 
Corporation (accumulated pursuant to the pro-
gram authorized under section 156 of the Fed-
eral Agriculture Improvement and Reform Act 
(7 U.S.C. 7272)) through disposition as author-
ized under section 156(f) of that Act or through 
the use of any other authority of the Com-
modity Credit Corporation. 
‘‘(4) TRANSFER RULE; STORAGE FEES.— 
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‘‘(A) GENERAL TRANSFER RULE.—Except 
with regard to emergency dispositions under 
paragraph (3)(B) and as provided in subpara-
graph (C), the Secretary shall ensure that bio-
energy producers that purchase eligible com-
modities pursuant to this section take posses-
sion of the eligible commodities within 30 cal-
endar days of the date of such purchase from 
the Commodity Credit Corporation. 
‘‘(B) PAYMENT
OF
STORAGE
FEES
PRO-
HIBITED.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall, to the maximum extent practicable, 
carry out this section in a manner that en-
sures no storage fees are paid by the Com-
modity Credit Corporation in the adminis-
tration of this section. 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply with respect to any commodities 
owned and held in inventory by the Com-
modity Credit Corporation (accumulated 
pursuant to the program authorized under 
section 156 of the Federal Agriculture Im-
provement and Reform Act (7 U.S.C. 
7272)). 
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‘‘(C) 
OPTION
TO
PREVENT
STORAGE 
FEES.— 
‘‘(i) IN
GENERAL.—The Secretary 
may enter into contracts with bioenergy 
producers to sell eligible commodities to 
such producers prior in time to entering 
into contracts with eligible entities to pur-
chase the eligible commodities to be used 
to satisfy the contracts entered into with 
the bioenergy producers. 
‘‘(ii) SPECIAL
TRANSFER
RULE.—If 
the Secretary makes a sale and purchase 
referred to in clause (i), the Secretary shall 
ensure that the bioenergy producer that 
purchased eligible commodities takes pos-
session of such commodities within 30 cal-
endar days of the date the Commodity 
Credit Corporation purchases the eligible 
commodities. 
‘‘(5) RELATION
TO
OTHER
LAWS.—If sugar 
that is subject to a marketing allotment under part 
VII of subtitle B of title III of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359aa et seq.) is 
the subject of a payment under this section, the 
sugar shall be considered marketed and shall count 
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against a processor’s allocation of an allotment 
under such part, as applicable. 
‘‘(6) FUNDING.—The Secretary shall use the 
funds, facilities, and authorities of the Commodity 
Credit Corporation, including the use of such sums 
as are necessary, to carry out this section. 
‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BCAP.—The term ‘BCAP’ means the Bio-
mass Crop Assistance Program established under 
this section. 
‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP 
project area’ means an area that— 
‘‘(A) has specified boundaries that are sub-
mitted to the Secretary by the project sponsor 
and subsequently approved by the Secretary; 
‘‘(B) includes producers with contract 
acreage that will supply a portion of the renew-
able biomass needed by a biomass conversion 
facility; and 
‘‘(C) is physically located within an eco-
nomically practicable distance from the biomass 
conversion facility. 
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‘‘(3) CONTRACT ACREAGE.—The term ‘contract 
acreage’ means eligible land that is covered by a 
BCAP contract entered into with the Secretary. 
‘‘(4) ELIGIBLE CROP.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
crop’ means a crop of renewable biomass. 
‘‘(B) EXCLUSIONS.—The term ‘eligible 
crop’ does not include— 
‘‘(i) any crop that is eligible to receive 
payments under title I of the Food, Con-
servation, and Energy Act of 2008 or an 
amendment made by that title; or 
‘‘(ii) any plant that is invasive or nox-
ious or has the potential to become 
invasive or noxious, as determined by the 
Secretary, in consultation with other ap-
propriate Federal or State departments 
and agencies. 
‘‘(5) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ includes agricultural and nonindustrial 
private forest lands (as defined in section 5(c) 
of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103a(c))). 
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‘‘(B) EXCLUSIONS.—The term ‘eligible 
land’ does not include— 
‘‘(i) Federal- or State-owned land; 
‘‘(ii) land that is native sod, as of the 
date of enactment of the Food, Conserva-
tion, and Energy Act of 2008; 
‘‘(iii) land enrolled in the conservation 
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.); 
‘‘(iv) land enrolled in the wetlands re-
serve program established under sub-
chapter C of chapter 1 of subtitle D of 
title XII of that Act (16 U.S.C. 3837 et 
seq.); or 
‘‘(v) land enrolled in the grassland re-
serve program established under sub-
chapter D of chapter 2 of subtitle D of 
title XII of that Act (16 U.S.C. 3838n et 
seq.). 
‘‘(6) ELIGIBLE MATERIAL.— 
‘‘(A) IN GENERAL.—The term ‘eligible ma-
terial’ means renewable biomass. 
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‘‘(B) EXCLUSIONS.—The term ‘eligible ma-
terial’ does not include— 
‘‘(i) any crop that is eligible to receive 
payments under title I of the Food, Con-
servation, and Energy Act of 2008 or an 
amendment made by that title; 
‘‘(ii) animal waste and byproducts (in-
cluding fats, oils, greases, and manure); 
‘‘(iii) food waste and yard waste; or 
‘‘(iv) algae. 
‘‘(7) PRODUCER.—The term ‘producer’ means 
an owner or operator of contract acreage that is 
physically located within a BCAP project area. 
‘‘(8) PROJECT
SPONSOR.—The term ‘project 
sponsor’ means— 
‘‘(A) a group of producers; or 
‘‘(B) a biomass conversion facility. 
‘‘(b) ESTABLISHMENT
AND PURPOSE.—The Sec-
retary shall establish and administer a Biomass Crop As-
sistance Program to— 
‘‘(1) support the establishment and production 
of eligible crops for conversion to bioenergy in se-
lected BCAP project areas; and 
‘‘(2) assist agricultural and forest land owners 
and operators with collection, harvest, storage, and 
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transportation of eligible material for use in a bio-
mass conversion facility. 
‘‘(c) BCAP PROJECT AREA.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
financial assistance to producers of eligible crops in 
a BCAP project area. 
‘‘(2) SELECTION OF PROJECT AREAS.— 
‘‘(A) IN GENERAL.—To be considered for 
selection as a BCAP project area, a project 
sponsor shall submit to the Secretary a pro-
posal that includes, at a minimum— 
‘‘(i) a description of the eligible land 
and eligible crops of each producer that 
will participate in the proposed BCAP 
project area; 
‘‘(ii) a letter of commitment from a 
biomass conversion facility that the facility 
will use the eligible crops intended to be 
produced in the proposed BCAP project 
area; 
‘‘(iii) evidence that the biomass con-
version facility has sufficient equity avail-
able, as determined by the Secretary, if the 
biomass conversion facility is not oper-
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ational at the time the proposal is sub-
mitted to the Secretary; and 
‘‘(iv) any other appropriate informa-
tion about the biomass conversion facility 
or proposed biomass conversion facility 
that gives the Secretary a reasonable as-
surance that the plant will be in operation 
by the time that the eligible crops are 
ready for harvest. 
‘‘(B) BCAP PROJECT
AREA
SELECTION 
CRITERIA.—In selecting BCAP project areas, 
the Secretary shall consider— 
‘‘(i) the volume of the eligible crops 
proposed to be produced in the proposed 
BCAP project area and the probability 
that such crops will be used for the pur-
poses of the BCAP; 
‘‘(ii) the volume of renewable biomass 
projected to be available from sources 
other than the eligible crops grown on con-
tract acres; 
‘‘(iii) the anticipated economic impact 
in the proposed BCAP project area; 
‘‘(iv) the opportunity for producers 
and local investors to participate in the 
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ownership of the biomass conversion facil-
ity in the proposed BCAP project area; 
‘‘(v) the participation rate by— 
‘‘(I) beginning farmers or ranch-
ers (as defined in accordance with sec-
tion 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 
1991(a))); or 
‘‘(II) 
socially 
disadvantaged 
farmers or ranchers (as defined in 
section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279(e))); 
‘‘(vi) the impact on soil, water, and 
related resources; 
‘‘(vii) the variety in biomass produc-
tion approaches within a project area, in-
cluding (as appropriate)— 
‘‘(I) agronomic conditions; 
‘‘(II) harvest and postharvest 
practices; and 
‘‘(III) 
monoculture 
and 
polyculture crop mixes; 
‘‘(viii) the range of eligible crops 
among project areas; and 
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‘‘(ix) any additional information, as 
determined by the Secretary. 
‘‘(3) CONTRACT.— 
‘‘(A) IN
GENERAL.—On approval of a 
BCAP project area by the Secretary, each pro-
ducer in the BCAP project area shall enter into 
a contract directly with the Secretary. 
‘‘(B) MINIMUM TERMS.—At a minimum, 
contracts shall include terms that cover— 
‘‘(i) an agreement to make available 
to the Secretary, or to an institution of 
higher education or other entity designated 
by the Secretary, such information as the 
Secretary considers to be appropriate to 
promote the production of eligible crops 
and the development of biomass conversion 
technology; 
‘‘(ii) compliance with the highly erod-
ible land conservation requirements of sub-
title B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and 
the wetland conservation requirements of 
subtitle C of title XII of that Act (16 
U.S.C. 3821 et seq.); 
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‘‘(iii) the implementation of (as deter-
mined by the Secretary)— 
‘‘(I) a conservation plan; or 
‘‘(II) a forest stewardship plan or 
an equivalent plan; and 
‘‘(iv) any additional requirements the 
Secretary considers appropriate. 
‘‘(C) DURATION.—A contract under this 
subsection shall have a term of up to— 
‘‘(i) 5 years for annual and perennial 
crops; or 
‘‘(ii) 15 years for woody biomass. 
‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In 
carrying out this subsection, the Secretary shall pro-
vide for the preservation of cropland base and yield 
history applicable to the land enrolled in a BCAP 
contract. 
‘‘(5) PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make establishment and annual payments di-
rectly to producers to support the establishment 
and production of eligible crops on contract 
acreage. 
‘‘(B) AMOUNT
OF
ESTABLISHMENT
PAY-
MENTS.—The amount of an establishment pay-
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ment under this subsection shall be up to 75 
percent of the costs of establishing an eligible 
perennial crop covered by the contract, includ-
ing— 
‘‘(i) the cost of seeds and stock for 
perennials; 
‘‘(ii) the cost of planting the perennial 
crop, as determined by the Secretary; and 
‘‘(iii) in the case of nonindustrial pri-
vate forestland, the costs of site prepara-
tion and tree planting. 
‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount of an annual payment 
under this subsection shall be determined 
by the Secretary. 
‘‘(ii) 
REDUCTION.—The 
Secretary 
shall reduce an annual payment by an 
amount determined to be appropriate by 
the Secretary, if— 
‘‘(I) an eligible crop is used for 
purposes other than the production of 
energy at the biomass conversion fa-
cility; 
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‘‘(II) an eligible crop is delivered 
to the biomass conversion facility; 
‘‘(III) the producer receives a 
payment under subsection (d); 
‘‘(IV) the producer violates a 
term of the contract; or 
‘‘(V) there are such other cir-
cumstances, as determined by the Sec-
retary to be necessary to carry out 
this section. 
‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, 
STORAGE, AND TRANSPORTATION.— 
‘‘(1) IN GENERAL.—The Secretary shall make a 
payment for the delivery of eligible material to a bio-
mass conversion facility to— 
‘‘(A) a producer of an eligible crop that is 
produced on BCAP contract acreage; or 
‘‘(B) a person with the right to collect or 
harvest eligible material. 
‘‘(2) PAYMENTS.— 
‘‘(A) COSTS COVERED.—A payment under 
this subsection shall be in an amount described 
in subparagraph (B) for— 
‘‘(i) collection; 
‘‘(ii) harvest; 
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‘‘(iii) storage; and 
‘‘(iv) transportation to a biomass con-
version facility. 
‘‘(B) AMOUNT.—Subject to paragraph (3), 
the Secretary may provide matching payments 
at a rate of $1 for each $1 per ton provided by 
the biomass conversion facility, in an amount 
equal to not more than $45 per ton for a period 
of 2 years. 
‘‘(3) LIMITATION
ON
ASSISTANCE
FOR
BCAP 
CONTRACT ACREAGE.—As a condition of the receipt 
of annual payment under subsection (c), a producer 
receiving a payment under this subsection for collec-
tion, harvest, storage or transportation of an eligible 
crop produced on BCAP acreage shall agree to a re-
duction in the annual payment. 
‘‘(e) REPORT.—Not later than 4 years after the date 
of enactment of the Food, Conservation, and Energy Act 
of 2008, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report on the dissemination by the Secretary of the 
best practice data and information gathered from partici-
pants receiving assistance under this section. 
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‘‘(f) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out 
this section such sums as are necessary for each of fiscal 
years 2008 through 2012. 
‘‘SEC. 9012. FOREST BIOMASS FOR ENERGY. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Forest Service, shall conduct a competitive research 
and development program to encourage use of forest bio-
mass for energy. 
‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to com-
pete under the program under this section include— 
‘‘(1) the Forest Service (acting through Re-
search and Development); 
‘‘(2) other Federal agencies; 
‘‘(3) State and local governments; 
‘‘(4) Indian tribes; 
‘‘(5) land-grant colleges and universities; and 
‘‘(6) private entities. 
‘‘(c) PRIORITY FOR PROJECT SELECTION.—In car-
rying out this section, the Secretary shall give priority to 
projects that— 
‘‘(1) develop technology and techniques to use 
low-value forest biomass, such as byproducts of for-
est health treatments and hazardous fuels reduction, 
for the production of energy; 
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‘‘(2) develop processes that integrate production 
of energy from forest biomass into biorefineries or 
other existing manufacturing streams; 
‘‘(3) develop new transportation fuels from for-
est biomass; and 
‘‘(4) improve the growth and yield of trees in-
tended for renewable energy production. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$15,000,000 for each of fiscal years 2009 through 2012. 
‘‘SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY WOOD ENERGY PLAN.—The 
term ‘community wood energy plan’ means an as-
sessment of— 
‘‘(A) available feedstocks necessary to sup-
ply a community wood energy system; and 
‘‘(B) the long-term feasibility of supplying 
and operating a community wood energy sys-
tem. 
‘‘(2) COMMUNITY WOOD ENERGY SYSTEM.— 
‘‘(A) IN GENERAL.—The term ‘community 
wood energy system’ means an energy system 
that— 
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‘‘(i) primarily services public facilities 
owned or operated by State or local gov-
ernments, including schools, town halls, li-
braries, and other public buildings; and 
‘‘(ii) uses woody biomass as the pri-
mary fuel. 
‘‘(B) INCLUSIONS.—The term ‘community 
wood energy system’ includes single facility cen-
tral heating, district heating, combined heat 
and energy systems, and other related biomass 
energy systems. 
‘‘(b) GRANT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary, acting 
through the Chief of the Forest Service, shall estab-
lish a program to be known as the ‘Community 
Wood Energy Program’ to provide— 
‘‘(A) grants of up to $50,000 to State and 
local governments (or designees) to develop 
community wood energy plans; and 
‘‘(B) competitive grants to State and local 
governments to acquire or upgrade community 
wood energy systems. 
‘‘(2) CONSIDERATIONS.—In selecting applicants 
for grants under paragraph (1)(B), the Secretary 
shall consider— 
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‘‘(A) the energy efficiency of the proposed 
system; 
‘‘(B) the cost effectiveness of the proposed 
system; and 
‘‘(C) other conservation and environmental 
criteria that the Secretary considers appro-
priate. 
‘‘(3) USE OF PLAN.—A State or local govern-
ment applying to receive a competitive grant de-
scribed in paragraph (1)(B) shall submit to the Sec-
retary as part of the grant application the applicable 
community wood energy plan. 
‘‘(c) LIMITATION.—A community wood energy system 
acquired with grant funds provided under subsection 
(b)(1)(B) shall not exceed an output of— 
‘‘(1) 50,000,000 Btu per hour for heating; and 
‘‘(2) 2 megawatts for electric power production. 
‘‘(d) MATCHING FUNDS.—A State or local govern-
ment that receives a grant under subsection (b) shall con-
tribute an amount of non-Federal funds towards the devel-
opment of the community wood energy plan, or acquisition 
of the community wood energy systems that is at least 
equal to the amount of grant funds received by the State 
or local government under that subsection. 
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$5,000,000 for each of fiscal years 2009 through 2012.’’. 
(b) CONFORMING AMENDMENT.—The Biomass Re-
search and Development Act of 2000 (7 U.S.C. 8601 et 
seq.) is repealed. 
SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY. 
(a) IN GENERAL.—The Secretary of Agriculture, the 
Secretary of Energy, the Administrator of the Environ-
mental Protection Agency, and the Secretary of Transpor-
tation (referred to in this section as the ‘‘Secretaries’’), 
shall jointly conduct a study that includes— 
(1) an assessment of the infrastructure needs 
for expanding the domestic production, transport, 
and distribution of biofuels given current and likely 
future market trends; 
(2) recommendations for infrastructure needs 
and development approaches, taking into account 
cost and other associated factors; and 
(3) a report that includes— 
(A) a summary of infrastructure needs; 
(B) an analysis of alternative development 
approaches to meeting the needs described in 
subparagraph (A), including cost, siting, and 
other regulatory issues; and 
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(C) recommendations for specific infra-
structure development actions to be taken. 
(b) SCOPE OF STUDY.— 
(1) IN GENERAL.—In conducting the study de-
scribed in subsection (a), the Secretaries shall ad-
dress— 
(A) current and likely future market 
trends for biofuels through calendar year 2025; 
(B) current and future availability of feed-
stocks; 
(C) water resource needs, including water 
requirements for biorefineries; 
(D) shipping and storage needs for bio-
mass feedstock and biofuels, including the ade-
quacy of rural roads; and 
(E) modes of transportation and delivery 
for biofuels (including shipment by rail, truck, 
pipeline or barge) and associated infrastructure 
issues. 
(2) 
CONSIDERATIONS.—In 
addressing 
the 
issues described in paragraph (1), the Secretaries 
shall consider— 
(A) the effects of increased tank truck, 
rail, and barge transport on existing infrastruc-
ture and safety; 
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(B) the feasibility of shipping biofuels 
through pipelines in existence as the date of en-
actment of this Act; 
(C) the development of new biofuels pipe-
lines, including siting, financing, timing, and 
other economic issues; 
(D) the implications of various biofuel 
blend levels on infrastructure needs; 
(E) the implications of various approaches 
to infrastructure development on resource use 
and conservation; 
(F) regional differences in biofuels infra-
structure needs; and 
(G) other infrastructure issues, as deter-
mined by the Secretaries. 
(c) IMPLEMENTATION.—In carrying out this section, 
the Secretaries — 
(1) shall— 
(A) consult with individuals and entities 
with interest or expertise in the areas described 
in subsection (b); 
(B) to the extent available, use the infor-
mation developed and results of the related 
studies authorized under sections 243 and 245 
of the Energy Independence and Security Act 
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of 2007 (Public Law 110–140; 121 Stat. 1540, 
1546)); and 
(C) submit to Congress the report required 
under subsection (a)(3), including— 
(i) in the Senate— 
(I) the Committee on Agri-
culture, Nutrition, and Forestry ; 
(II) the Committee on Com-
merce, Science, and Transportation; 
(III) the Committee on Energy 
and Natural Resources; and 
(IV) the Committee on Environ-
ment and Public Works; and 
(ii) in the House of Representatives— 
(I) the Committee on Agri-
culture; 
(II) the Committee on Energy 
and Commerce; 
(III) the Committee on Trans-
portation and Infrastructure; and 
(IV) the Committee on Science 
and Technology; and 
(2) may issue a solicitation for a competition to 
select a contractor to support the Secretaries. 
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SEC. 9003. RENEWABLE FERTILIZER STUDY. 
(a) IN GENERAL.—Not later than 1 year after the 
date of receipt of appropriations to carry out this section, 
the Secretary shall— 
(1) conduct a study to assess the current state 
of knowledge regarding the potential for the produc-
tion of fertilizer from renewable energy sources in 
rural areas, including— 
(A) identification of the critical challenges 
to commercialization of rural production of ni-
trogen and phosphorus-based fertilizer from re-
newables; 
(B) the most promising processes and 
technologies for renewable fertilizer production; 
(C) the potential cost-competitiveness of 
renewable fertilizer; and 
(D) the potential impacts of renewable fer-
tilizer on fossil fuel use and the environment; 
and 
(2) submit to the Committee on Agriculture of 
the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a 
report describing the results of the study. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,000,000 for fiscal year 2009. 
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TITLE X—HORTICULTURE AND 
ORGANIC AGRICULTURE 
SEC. 10001. DEFINITIONS. 
In this title: 
(1) SPECIALTY
CROP.—The term ‘‘specialty 
crop’’ has the meaning given the term in section 3 
of the Specialty Crops Competitiveness Act of 2004 
(7 U.S.C. 1621 note; Public Law 108–465). 
(2) STATE DEPARTMENT OF AGRICULTURE.— 
The term ‘‘State department of agriculture’’ means 
the agency, commission, or department of a State 
government responsible for protecting and promoting 
agriculture in the State. 
Subtitle A—Horticulture Marketing 
and Information 
SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT 
OF AGRICULTURE COMMODITY PURCHASE 
PROCESS. 
(a) EVALUATION REQUIRED.—The Secretary shall 
arrange to have performed an independent evaluation of 
the purchasing processes (including the budgetary, statu-
tory, and regulatory authority underlying the processes) 
used by the Department of Agriculture to implement the 
requirement that funds available under section 32 of the 
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Act of August 24, 1935 (7 U.S.C. 612c), shall be prin-
cipally devoted to perishable agricultural commodities. 
(b) SUBMISSION OF RESULTS.—Not later than 18 
months after the date of the enactment of this Act, the 
Secretary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a re-
port on the results of the evaluation. 
SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES. 
Section 8e(a) of the Agricultural Adjustment Act (7 
U.S.C. 608e–1(a)), reenacted with amendments by the Ag-
ricultural Marketing Agreement Act of 1937, is amended 
in the matter preceding the first proviso in the first sen-
tence by inserting ‘‘clementines,’’ after ‘‘nectarines,’’. 
SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS 
OF AGRICULTURE. 
Section 2(a) of the Census of Agriculture Act of 1997 
(7 U.S.C. 2204g(a)) is amended— 
(1) by striking ‘‘In 1998’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—In 1998’’; and 
(2) by adding at the end the following: 
‘‘(2) INCLUSION OF SPECIALTY CROPS.—Effec-
tive beginning with the census of agriculture re-
quired to be conducted in 2008, the Secretary shall 
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conduct as part of each census of agriculture a cen-
sus of specialty crops (as that term is defined in sec-
tion 3 of the Specialty Crops Competitiveness Act of 
2004 (7 U.S.C. 1621 note; Public Law 108-465)).’’. 
SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CON-
SUMER INFORMATION. 
(a) REGIONS AND MEMBERS.—Section 1925(b)(2) of 
the Mushroom Promotion, Research, and Consumer Infor-
mation Act of 1990 (7 U.S.C. 6104(b)(2)) is amended— 
(1) in subparagraph (B), by striking ‘‘4 re-
gions’’ and inserting ‘‘3 regions’’; 
(2) 
in 
subparagraph 
(D), 
by 
striking 
‘‘35,000,000 pounds’’ and inserting ‘‘50,000,000 
pounds’’; and 
(3) by striking subparagraph (E) and inserting 
the following: 
‘‘(E) ADDITIONAL MEMBERS.—In addition 
to the members appointed pursuant to para-
graph (1), and subject to the 9-member limit of 
members on the Council provided in that para-
graph, the Secretary shall appoint additional 
members to the council from a region that at-
tains additional pounds of production as fol-
lows: 
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‘‘(i) If the annual production of a re-
gion is greater than 110,000,000 pounds, 
but less than or equal to 180,000,000 
pounds, the region shall be represented by 
1 additional member. 
‘‘(ii) If the annual production of a re-
gion is greater than 180,000,000 pounds, 
but less than or equal to 260,000,000 
pounds, the region shall be represented by 
2 additional members. 
‘‘(iii) If the annual production of a re-
gion is greater than 260,000,000 pounds, 
the region shall be represented by 3 addi-
tional members.’’. 
(b) POWERS
AND DUTIES
OF COUNCIL.—Section 
1925(c) of the Mushroom Promotion, Research, and Con-
sumer Information Act of 1990 (7 U.S.C. 6104(c)) is 
amended— 
(1) by redesignating paragraphs (6), (7), and 
(8) as paragraphs (7), (8), and (9), respectively; and 
(2) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) to develop and propose to the Secretary 
programs for good agricultural and good handling 
practices and related activities for mushrooms;’’. 
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SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES. 
(a) INITIATIVE AUTHORIZED.—The Secretary may 
carry out a food safety education program to educate the 
public and persons in the fresh produce industry about— 
(1) scientifically proven practices for reducing 
microbial pathogens on fresh produce; and 
(2) methods of reducing the threat of cross-con-
tamination of fresh produce through sanitary han-
dling practices. 
(b) COOPERATION.—The Secretary may carry out the 
education program in cooperation with public and private 
partners. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $1,000,000 for each of fiscal years 2008 
through 2012, to remain available until expended. 
SEC. 10106. FARMERS’ MARKET PROMOTION PROGRAM. 
Section 6 of the Farmer-to-Consumer Direct Mar-
keting Act of 1976 (7 U.S.C. 3005) is amended— 
(1) in subsection (a), by inserting ‘‘and to pro-
mote direct producer-to-consumer marketing’’ before 
the period at the end; 
(2) in subsection (b)(1)— 
(A) in subparagraph (A), by inserting 
‘‘agri-tourism activities,’’ after ‘‘programs,’’; 
and 
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(B) in subparagraph (B)— 
(i) by inserting ‘‘agri-tourism activi-
ties,’’ after ‘‘programs,’’ and 
(ii) by striking ‘‘infrastructure’’ and 
inserting ‘‘marketing opportunities’’; 
(3) in subsection (c)(1), by inserting ‘‘or a pro-
ducer network or association’’ after ‘‘cooperative’’; 
and 
(4) by striking subsection (e) and inserting the 
following: 
‘‘(e) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use 
to carry out this section— 
‘‘(A) $3,000,000 for fiscal year 2008; 
‘‘(B) $5,000,000 for each of fiscal years 
2009 through 2010; and 
‘‘(C) $10,000,000 for each of fiscal years 
2011 and 2012. 
‘‘(2) USE OF FUNDS.—Not less than 10 percent 
of the funds used to carry out this section in a fiscal 
year under paragraph (1) shall be used to support 
the use of electronic benefits transfers for Federal 
nutrition programs at farmers’ markets. 
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‘‘(3) INTERDEPARTMENTAL
COORDINATION.— 
In carrying out this subsection, the Secretary shall 
ensure coordination between the various agencies to 
the maximum extent practicable. 
‘‘(4) LIMITATION.—Funds described in para-
graph (2)— 
‘‘(A) may not be used for the ongoing cost 
of carrying out any project; and 
‘‘(B) shall only be provided to eligible enti-
ties that demonstrate a plan to continue to pro-
vide EBT card access at 1 or more farmers’ 
markets following the receipt of the grant.’’. 
SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION. 
(a) IN GENERAL.—The Secretary shall— 
(1) carry out market news activities to provide 
timely price and shipment information of specialty 
crops in the United States; and 
(2) use funds made available under subsection 
(b) to increase the reporting levels for specialty 
crops in effect on the date of enactment of this Act. 
(b) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to any other funds made available through annual ap-
propriations for market news services, there is authorized 
to be appropriated to carry out this section $9,000,000 
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for each of fiscal years 2008 through 2012, to remain 
available until expended. 
SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVO-
CADOS FOR GRADES AND STANDARDS AND 
OTHER PURPOSES. 
(a) IN GENERAL.—The Secretary shall initiate proce-
dures under the Agricultural Adjustment Act (7 U.S.C. 
601 et seq.), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, to determine 
whether it would be appropriate to establish a Federal 
marketing order for Hass avocados relating to grades and 
standards and for other purposes under that Act. 
(b) EXPEDITED PROCEDURES.— 
(1) PROPOSAL FOR AN ORDER.—An organiza-
tion of domestic avocado producers in existence on 
the date of enactment of this Act may request the 
issuance of, and submit to the Secretary a proposal 
for, an order described in subsection (a). 
(2) PUBLICATION
OF
PROPOSAL.—Not later 
than 60 days after the date on which the Secretary 
receives a proposed order under paragraph (1), the 
Secretary shall initiate procedures described in sub-
section (a) to determine whether the proposed order 
should proceed. 
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(c) EFFECTIVE DATE.—Any order issued under this 
section shall become effective not later than 15 months 
after the date on which the Secretary initiates procedures 
under the Agricultural Adjustment Act (7 U.S.C. 601 et 
seq.), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937. 
SEC. 10109. SPECIALTY CROP BLOCK GRANTS. 
(a) DEFINITION OF SPECIALTY CROP.—Section 3(1) 
of the Specialty Crops Competitiveness Act of 2004 (Pub-
lic Law 108–465; 7 U.S.C. 1621 note) is amended by in-
serting ‘‘horticulture and’’ before ‘‘nursery’’. 
(b) DEFINITION OF STATE.—Section 3(2) of the Spe-
cialty Crops Competitiveness Act of 2004 (Public Law 
108–465; 7 U.S.C. 1621 note) is amended by striking 
‘‘and the Commonwealth of Puerto Rico’’ and inserting 
‘‘the Commonwealth of Puerto Rico, Guam, American 
Samoa, the United States Virgin Islands, and the Com-
monwealth of the Northern Mariana Islands’’. 
(c) SPECIALTY CROP BLOCK GRANTS.—Section 101 
of the Specialty Crops Competitiveness Act of 2004 (Pub-
lic Law 108–465; 7 U.S.C. 1621 note) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Subject to the appropria-
tion of funds to carry out this section’’ and in-
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serting ‘‘Using the funds made available under 
subsection (j)’’; and 
(B) by striking ‘‘2009’’ and inserting 
‘‘2012’’; 
(2) in subsection (b), by striking ‘‘appropriated 
pursuant to the authorization of appropriations in 
subsection (i)’’ and inserting ‘‘made available under 
subsection (j)’’; 
(3) by striking subsection (c) and inserting the 
following: 
‘‘(c) MINIMUM GRANT AMOUNT.—Notwithstanding 
subsection (b), each State shall receive a grant under this 
section for each fiscal year in an amount that is at least 
equal to the higher of— 
‘‘(1) $100,000; or 
‘‘(2) 1⁄3 of 1 percent of the total amount of 
funding made available to carry out this section for 
the fiscal year.’’; and 
(4) by striking subsection (i) and inserting the 
following: 
‘‘(i) REALLOCATION.— 
‘‘(1) IN GENERAL.—The Secretary shall reallo-
cate to other States in accordance with paragraph 
(2) any amounts made available for a fiscal year 
under this section that are not obligated or expended 
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by a date during that fiscal year determined by the 
Secretary. 
‘‘(2) PRO RATA ALLOCATION.—The Secretary 
shall allocate funds described in paragraph (1) pro 
rata to the remaining States that applied during the 
specified grant application period. 
‘‘(3) USE OF REALLOCATED FUNDS.—Funds al-
located to a State under this subsection shall be 
used by the State only to carry out projects that 
were previously approved in the State plan of the 
State. 
‘‘(j) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary of Agriculture shall 
make grants under this section, using— 
‘‘(1) $10,000,000 for fiscal year 2008; 
‘‘(2) $49,000,000 for fiscal year 2009; and 
‘‘(3) $55,000,000 for each of fiscal years 2010 
through 2012.’’. 
Subtitle B—Pest and Disease 
Management 
SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND 
DISASTER PREVENTION. 
(a) IN GENERAL.—Subtitle A of the Plant Protection 
Act (7 U.S.C. 7711 et seq.) is amended by adding at the 
end the following: 
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‘‘SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND 
DISASTER PREVENTION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) EARLY PLANT PEST DETECTION AND SUR-
VEILLANCE.—The term ‘early plant pest detection 
and surveillance’ means the full range of activities 
undertaken to find newly introduced plant pests, 
whether the plant pests are new to the United States 
or new to certain areas of the United States, be-
fore— 
‘‘(A) the plant pests become established; or 
‘‘(B) the plant pest infestations become too 
large and costly to eradicate or control. 
‘‘(2) SPECIALTY
CROP.—The term ‘specialty 
crop’ has the meaning given the term in section 3 
of the Specialty Crops Competitiveness Act of 2004 
(7 U.S.C. 1621 note; Public Law 108–465). 
‘‘(3) STATE DEPARTMENT OF AGRICULTURE.— 
The term ‘State department of agriculture’ means 
an agency of a State that has a legal responsibility 
to perform early plant pest detection and surveil-
lance activities. 
‘‘(b) EARLY PLANT PEST DETECTION AND SURVEIL-
LANCE IMPROVEMENT PROGRAM.— 
‘‘(1) COOPERATIVE
AGREEMENTS.—The Sec-
retary shall enter into a cooperative agreement with 
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each State department of agriculture that agrees to 
conduct early plant pest detection and surveillance 
activities. 
‘‘(2) CONSULTATION.—In carrying out this sub-
section, the Secretary shall consult with— 
‘‘(A) the National Plant Board; and 
‘‘(B) other interested parties. 
‘‘(3) FEDERAL
ADVISORY
COMMITTEE
ACT.— 
The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to consultations under this 
subsection. 
‘‘(4) APPLICATION.— 
‘‘(A) IN GENERAL.—A State department of 
agriculture seeking to enter into a cooperative 
agreement under this subsection shall submit to 
the Secretary an application containing such in-
formation as the Secretary may require. 
‘‘(B) NOTIFICATION.—The Secretary shall 
notify applicants of— 
‘‘(i) the requirements to be imposed 
on a State department of agriculture for 
auditing of, and reporting on, the use of 
any funds provided by the Secretary under 
the cooperative agreement; 
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‘‘(ii) the criteria to be used to ensure 
that early pest detection and surveillance 
activities supported under the cooperative 
agreement are based on sound scientific 
data or thorough risk assessments; and 
‘‘(iii) the means of identifying path-
ways of pest introductions. 
‘‘(5) USE OF FUNDS.— 
‘‘(A) PLANT PEST DETECTION AND SUR-
VEILLANCE
ACTIVITIES.—A State department 
of agriculture that receives funds under this 
subsection shall use the funds to carry out early 
plant pest detection and surveillance activities 
approved by the Secretary to prevent the intro-
duction or spread of a plant pest. 
‘‘(B) SUBAGREEMENTS.—Nothing in this 
subsection prevents a State department of agri-
culture from using funds received under para-
graph (4) to enter into subagreements with po-
litical subdivisions of the State that have legal 
responsibilities relating to agricultural plant 
pest and disease surveillance. 
‘‘(C) NON-FEDERAL
SHARE.—The non- 
Federal share of the cost of carrying out a co-
operative agreement under this section may be 
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provided in-kind, including through provision of 
such indirect costs of the cooperative agreement 
as the Secretary considers to be appropriate. 
‘‘(D) ABILITY TO PROVIDE FUNDS.—The 
Secretary shall not take the ability to provide 
non-Federal costs to carry out a cooperative 
agreement entered into under subparagraph (A) 
into consideration when deciding whether to 
enter into a cooperative agreement with a State 
department of agriculture. 
‘‘(6) SPECIAL
FUNDING
CONSIDERATIONS.— 
The Secretary shall provide funds to a State depart-
ment of agriculture if the Secretary determines 
that— 
‘‘(A) the State department of agriculture is 
in a State that has a high risk of being affected 
by 1 or more plant pests or diseases, taking 
into consideration— 
‘‘(i) the number of international ports 
of entry in the State; 
‘‘(ii) the volume of international pas-
senger and cargo entry into the State; 
‘‘(iii) the geographic location of the 
State and if the location or types of agri-
cultural commodities produced in the State 
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are conducive to agricultural pest and dis-
ease establishment due to the climate, crop 
diversity, or natural resources (including 
unique plant species) of the State; and 
‘‘(iv) whether the Secretary has deter-
mined that an agricultural pest or disease 
in the State is a Federal concern ; and 
‘‘(B) the early plant pest detection and 
surveillance activities supported with the funds 
will likely— 
‘‘(i) prevent the introduction and es-
tablishment of plant pests; and 
‘‘(ii) provide a comprehensive ap-
proach to compliment Federal detection ef-
forts. 
‘‘(7) REPORTING
REQUIREMENT.—Not later 
than 90 days after the date of completion of an early 
plant pest detection and surveillance activity con-
ducted by a State department of agriculture using 
funds provided under this section, the State depart-
ment of agriculture shall submit to the Secretary a 
report that describes the purposes and results of the 
activities. 
‘‘(c) THREAT
IDENTIFICATION
AND
MITIGATION 
PROGRAM.— 
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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a threat identification and mitigation pro-
gram to determine and address threats to the do-
mestic production of crops. 
‘‘(2) REQUIREMENTS.—In conducting the pro-
gram established under paragraph (1), the Secretary 
shall— 
‘‘(A) develop risk assessments of the poten-
tial threat to the agricultural industry of the 
United States from foreign sources; 
‘‘(B) collaborate with the National Plant 
Board; and 
‘‘(C) implement action plans for high con-
sequence plant pest and diseases to assist in 
preventing the introduction and widespread dis-
semination of new plant pest and disease 
threats in the United States. 
‘‘(3) REPORTS.—Not later than 1 year after the 
date of enactment of this paragraph, and annually 
thereafter, the Secretary shall submit to the Com-
mittee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report on the action 
plans described in paragraph (2), including an ac-
counting of funds expended on the action plans. 
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‘‘(d) SPECIALTY CROP CERTIFICATION
AND RISK 
MANAGEMENT SYSTEMS.—The Secretary shall provide 
funds and technical assistance to specialty crop growers, 
organizations representing specialty crop growers, and 
State and local agencies working with specialty crop grow-
ers and organizations for the development and implemen-
tation of— 
‘‘(1) audit-based certification systems, such as 
best management practices— 
‘‘(A) to address plant pests; and 
‘‘(B) to mitigate the risk of plant pests in 
the movement of plants and plant products; and 
‘‘(2) nursery plant pest risk management sys-
tems, in collaboration with the nursery industry, re-
search institutions, and other appropriate entities— 
‘‘(A) to enable growers to identify and 
prioritize nursery plant pests and diseases of 
regulatory significance; 
‘‘(B) to prevent the introduction, establish-
ment, and spread of those plant pests and dis-
eases; and 
‘‘(C) to reduce the risk of and mitigate 
those plant pests and diseases. 
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‘‘(e) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section— 
‘‘(1) $12,000,000 for fiscal year 2009; 
‘‘(2) $45,000,000 for fiscal year 2010; 
‘‘(3) $50,000,000 for fiscal year 2011; and 
‘‘(4) $50,000,000 for fiscal year 2012 and each 
fiscal year thereafter.’’. 
(b) CONGRESSIONAL DISAPPROVAL.—Congress dis-
approves the rule submitted by the Secretary of Agri-
culture relating to cost-sharing for animal and plant 
health emergency programs (68 Fed. Reg. 40541 (2003)), 
and such rule shall have no force or effect. 
SEC. 10202. NATIONAL CLEAN PLANT NETWORK. 
(a) IN GENERAL.—The Secretary shall establish a 
program to be known as the ‘‘National Clean Plant Net-
work’’ (referred to in this section as the ‘‘Program’’). 
(b) REQUIREMENTS.—Under the Program, the Sec-
retary shall establish a network of clean plant centers for 
diagnostic and pathogen elimination services to— 
(1) produce clean propagative plant material; 
and 
(2) maintain blocks of pathogen-tested plant 
material in sites located throughout the United 
States. 
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(c) AVAILABILITY OF CLEAN PLANT SOURCE MATE-
RIAL.—Clean plant source material may be made available 
to— 
(1) a State for a certified plant program of the 
State; and 
(2) private nurseries and producers. 
(d) CONSULTATION AND COLLABORATION.—In car-
rying out the Program, the Secretary shall— 
(1) consult with State departments of agri-
culture, land grant universities, and NLGCA Institu-
tions (as defined in section 1404 of the National Ag-
ricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3103)); and 
(2) to the extent practicable and with input 
from the appropriate State officials and industry 
representatives, use existing Federal or State facili-
ties to serve as clean plant centers. 
(e) FUNDING.—Of the funds of the Commodity Cred-
it Corporation, the Secretary shall use to carry out the 
Program $5,000,000 for each of fiscal years 2009 through 
2012, to remain available until expended. 
SEC. 10203. PLANT PROTECTION. 
(a) REVIEW OF PAYMENT OF COMPENSATION.—Sec-
tion 415(e) of the Plant Protection Act (7 U.S.C. 7715(e)) 
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is amended in the second sentence by striking ‘‘of longer 
than 60 days’’. 
(b) SECRETARIAL DISCRETION.—Section 442(c) of 
the Plant Protection Act (7 U.S.C. 7772(c)) is amended 
by striking ‘‘of longer than 60 days’’. 
(c) SUBPOENA AUTHORITY.—Section 423 of the 
Plant Protection Act (7 U.S.C. 7733) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) AUTHORITY
TO ISSUE.—The Secretary shall 
have the power to subpoena the attendance and testimony 
of any witness, the production of all evidence (including 
books, papers, documents, electronically stored informa-
tion, and other tangible things that constitute or contain 
evidence), or to require the person to whom the subpoena 
is directed to permit the inspection of premises relating 
to the administration or enforcement of this title or any 
matter under investigation in connection with this title.’’; 
(2) in subsection (b), by striking ‘‘documen-
tary’’; and 
(3) in subsection (c)— 
(A) in the first sentence, by striking ‘‘testi-
mony of any witness and the production of doc-
umentary evidence’’ and inserting ‘‘testimony of 
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any witness, the production of evidence, or the 
inspection of premises’’; and 
(B) in the second sentence, by striking 
‘‘question or to produce documentary evidence’’ 
and inserting ‘‘question, produce evidence, or 
permit the inspection of premises’’. 
(d) WILLFUL VIOLATIONS.—Section 424(b)(1)(A) of 
the Plant Protection Act (7 U.S.C. 7734(b)(1)(A)) is 
amended by striking ‘‘and $500,000 for all violations adju-
dicated in a single proceeding’’ and inserting ‘‘$500,000 
for all violations adjudicated in a single proceeding if the 
violations do not include a willful violation, and 
$1,000,000 for all violations adjudicated in a single pro-
ceeding if the violations include a willful violation’’. 
SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND 
OVERSIGHT OF CERTAIN REGULATED ARTI-
CLES. 
(a) IN GENERAL.—Not later than 18 months after 
the date of enactment of this Act, the Secretary shall— 
(1) take action on each issue identified in the 
document entitled ‘‘Lessons Learned and Revisions 
under Consideration for APHIS’ Biotechnology 
Framework’’, dated October 4, 2007; and 
(2) as the Secretary considers appropriate, pro-
mulgate regulations to improve the management and 
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oversight of articles regulated under the Plant Pro-
tection Act (7 U.S.C. 7701 et seq.). 
(b) INCLUSIONS.—In carrying out subsection (a), the 
Secretary shall take actions that are designed to en-
hance— 
(1) the quality and completeness of records; 
(2) the availability of representative samples; 
(3) the maintenance of identity and control in 
the event of an unauthorized release; 
(4) corrective actions in the event of an unau-
thorized release; 
(5) protocols for conducting molecular forensics; 
(6) clarity in contractual agreements; 
(7) the use of the latest scientific techniques for 
isolation and confinement distances; 
(8) standards for quality management systems 
and effective research; and 
(9) the design of electronic permits to store 
documents and other information relating to the per-
mit and notification processes. 
(c) CONSIDERATION.—In carrying out subsection (a), 
the Secretary shall consider— 
(1) establishing— 
(A) a system of risk-based categories to 
classify each regulated article; 
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(B) a means to identify regulated articles 
(including the retention of seed samples); and 
(C) standards for isolation and contain-
ment distances; and 
(2) requiring permit holders— 
(A) to maintain a positive chain of cus-
tody; 
(B) to provide for the maintenance of 
records; 
(C) to provide for the accounting of mate-
rial; 
(D) to conduct periodic audits; 
(E) to establish an appropriate training 
program; 
(F) to provide contingency and corrective 
action plans; and 
(G) to submit reports as the Secretary con-
siders to be appropriate. 
SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND. 
(a) DEFINITIONS.—In this section: 
(1) AUTHORIZED EQUIPMENT.— 
(A) IN GENERAL.—The term ‘‘authorized 
equipment’’ means any equipment necessary for 
the management of forest land. 
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(B) INCLUSIONS.—The term ‘‘authorized 
equipment’’ includes— 
(i) cherry pickers; 
(ii) equipment necessary for— 
(I) the construction of staging 
and marshalling areas; 
(II) the planting of trees; and 
(III) the surveying of forest land; 
(iii) vehicles capable of transporting 
harvested trees; 
(iv) wood chippers; and 
(v) any other appropriate equipment, 
as determined by the Secretary. 
(2) FUND.—The term ‘‘Fund’’ means the Pest 
and Disease Revolving Loan Fund established by 
subsection (b). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture, acting through the 
Deputy Chief of the State and Private Forestry or-
ganization. 
(b) ESTABLISHMENT
OF FUND.—There is estab-
lished in the Treasury of the United States a revolving 
fund, to be known as the ‘‘Pest and Disease Revolving 
Loan Fund’’, consisting of such amounts as are appro-
priated to the Fund under subsection (f). 
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(c) EXPENDITURES FROM FUND.— 
(1) IN GENERAL.—Subject to paragraph (2), on 
request by the Secretary, the Secretary of the Treas-
ury shall transfer from the Fund to the Secretary 
such amounts as the Secretary determines are nec-
essary to provide loans under subsection (e). 
(2) ADMINISTRATIVE EXPENSES.—An amount 
not exceeding 10 percent of the amounts in the 
Fund shall be available for each fiscal year to pay 
the administrative expenses necessary to carry out 
this section. 
(d) TRANSFERS OF AMOUNTS.— 
(1) IN GENERAL.—The amounts required to be 
transferred to the Fund under this section shall be 
transferred at least monthly from the general fund 
of the Treasury to the Fund on the basis of esti-
mates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall 
be made in amounts subsequently transferred to the 
extent prior estimates were in excess of or less than 
the amounts required to be transferred. 
(e) USES OF FUND.— 
(1) LOANS.— 
(A) IN GENERAL.—The Secretary shall use 
amounts in the Fund to provide loans to eligible 
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units of local government to finance purchases 
of authorized equipment to monitor, remove, 
dispose of, and replace infested trees that are 
located— 
(i) on land under the jurisdiction of 
the eligible units of local government; and 
(ii) within the borders of quarantine 
areas infested by plant pests. 
(B) MAXIMUM
AMOUNT.—The maximum 
amount of a loan that may be provided by the 
Secretary to an eligible unit of local government 
under this subsection shall be the lesser of— 
(i) the amount that the eligible unit of 
local government has appropriated to fi-
nance purchases of authorized equipment 
in accordance with subparagraph (A); or 
(ii) $5,000,000. 
(C) INTEREST RATE.—The interest rate on 
any loan made by the Secretary under this 
paragraph shall be a rate equal to 2 percent. 
(D) REPORT.—Not later than 180 days 
after the date on which an eligible unit of local 
government receives a loan provided by the Sec-
retary under subparagraph (A), the eligible unit 
of local government shall submit to the Sec-
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retary a report that describes each purchase 
made by the eligible unit of local government 
using assistance provided through the loan. 
(2) LOAN REPAYMENT SCHEDULE.— 
(A) IN GENERAL.—To be eligible to receive 
a loan from the Secretary under paragraph (1), 
in accordance with each requirement described 
in subparagraph (B), an eligible unit of local 
government shall enter into an agreement with 
the Secretary to establish a loan repayment 
schedule relating to the repayment of the loan. 
(B) REQUIREMENTS
RELATING
TO
LOAN 
REPAYMENT
SCHEDULE.—A loan repayment 
schedule established under subparagraph (A) 
shall require the eligible unit of local govern-
ment— 
(i) to repay to the Secretary of the 
Treasury, not later than 1 year after the 
date on which the eligible unit of local gov-
ernment receives a loan under paragraph 
(1), 
and 
semiannually 
thereafter, 
an 
amount equal to the quotient obtained by 
dividing— 
(I) the principal amount of the 
loan (including interest); by 
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(II) the total quantity of pay-
ments that the eligible unit of local 
government is required to make dur-
ing the repayment period of the loan; 
and 
(ii) not later than 20 years after the 
date on which the eligible unit of local gov-
ernment receives a loan under paragraph 
(1), to complete repayment to the Sec-
retary of the Treasury of the loan made 
under this section (including interest). 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Fund such sums 
as are necessary to carry out this section. 
SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO 
PLANT PEST AND DISEASE PREVENTION AC-
TIVITIES. 
Section 431 of the Plant Protection Act (7 U.S.C. 
7751) is amended by adding at the end the following: 
‘‘(f) TRANSFER
OF
COOPERATIVE
AGREEMENT 
FUND.— 
‘‘(1) IN GENERAL.—A State may provide to a 
unit of local government in the State described in 
paragraph (2) any cost-sharing assistance or financ-
ing mechanism provided to the State under a cooper-
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ative agreement entered into under this Act between 
the Secretary and the State relating to the eradi-
cation, prevention, control, or suppression of plant 
pests. 
‘‘(2) REQUIREMENTS.—To be eligible for assist-
ance or financing under paragraph (1), a unit of 
local government shall be— 
‘‘(A) engaged in any activity relating to 
the eradication, prevention, control, or suppres-
sion of the plant pest infestation covered under 
the cooperative agreement between the Sec-
retary and the State; and 
‘‘(B) capable of documenting each plant 
pest infestation eradication, prevention, control, 
or suppression activity generally carried out 
by— 
‘‘(i) the Department of Agriculture; or 
‘‘(ii) the State department of agri-
culture that has jurisdiction over the unit 
of local government.’’. 
Subtitle C—Organic Agriculture 
SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST- 
SHARE PROGRAM. 
Section 10606 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 6523) is amended— 
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(1) in subsection (a), by striking ‘‘$5,000,000 
for fiscal year 2002’’ and inserting ‘‘$22,000,000 for 
fiscal year 2008’’; 
(2) in subsection (b)(2), by striking ‘‘$500’’ 
and inserting ‘‘$750’’; and 
(3) by adding at the end the following: 
‘‘(c) REPORTING.—Not later than March 1 of each 
year, the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that describes the requests by, disbursements 
to, and expenditures for each State under the program 
during the current and previous fiscal year, including the 
number of producers and handlers served by the program 
in the previous fiscal year.’’. 
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INI-
TIATIVES. 
Section 7407 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 5925c) is amended to read 
as follows: 
‘‘SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INI-
TIATIVES. 
‘‘(a) IN GENERAL.—The Secretary shall collect and 
report data on the production and marketing of organic 
agricultural products. 
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‘‘(b) REQUIREMENTS.—In carrying out subsection 
(a), the Secretary shall, at a minimum— 
‘‘(1) collect and distribute comprehensive re-
porting of prices relating to organically produced ag-
ricultural products; 
‘‘(2) conduct surveys and analysis and publish 
reports relating to organic production, handling, dis-
tribution, retail, and trend studies (including con-
sumer purchasing patterns); and 
‘‘(3) develop surveys and report statistical anal-
ysis on organically produced agricultural products. 
‘‘(c) REPORT.—Not later than 180 days after the 
date of enactment of this subsection, the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that— 
‘‘(1) describes the progress that has been made 
in implementing this section; and 
‘‘(2) identifies any additional production and 
marketing data needs. 
‘‘(d) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use 
to carry out this section $5,000,000, to remain 
available until expended. 
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‘‘(2) ADDITIONAL
FUNDING.—In addition to 
funds made available under paragraph (1), there are 
authorized to be appropriated to carry out this sec-
tion not more than $5,000,000 for each of fiscal 
years 2008 through 2012, to remain available until 
expended.’’. 
SEC. 10303. NATIONAL ORGANIC PROGRAM. 
Section 2123 of the Organic Foods Production Act 
of 1990 (7 U.S.C. 6522) is amended— 
(1) by striking ‘‘There are’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—There are’’; and 
(2) by adding at the end the following: 
‘‘(b) 
NATIONAL
ORGANIC
PROGRAM.—Notwith-
standing any other provision of law, in order to carry out 
activities under the national organic program established 
under this title, there are authorized to be appropriated— 
‘‘(1) $5,000,000 for fiscal year 2008; 
‘‘(2) $6,500,000 for fiscal year 2009; 
‘‘(3) $8,000,000 for fiscal year 2010; 
‘‘(4) $9,500,000 for fiscal year 2011; 
‘‘(5) $11,000,000 for fiscal year 2012; and 
‘‘(6) in addition to those amounts, such addi-
tional sums as are necessary for fiscal year 2009 
and each fiscal year thereafter.’’. 
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Subtitle D—Miscellaneous 
SEC. 10401. NATIONAL HONEY BOARD. 
Section 7(c) of the Honey Research, Promotion, and 
Consumer Information Act (7 U.S.C. 4606(c)) is amended 
by adding at the end the following: 
‘‘(12) REFERENDUM REQUIREMENT.— 
‘‘(A) DEFINITION
OF
EXISTING
HONEY 
BOARD.—The term ‘existing Honey Board’ 
means the Honey Board in effect on the date 
of enactment of this paragraph. 
‘‘(B) CONDUCT OF REFERENDA.—Notwith-
standing any other provision of law, subject to 
subparagraph (C), the order providing for the 
establishment and operation of the existing 
Honey Board shall continue in force, until the 
Secretary first conducts, at the earliest prac-
ticable date, but not later than 180 days after 
the date of enactment of this paragraph, 
referenda on orders to establish a honey packer- 
importer board or a United States honey pro-
ducer board. 
‘‘(C) 
REQUIREMENTS.—In 
conducting 
referenda under subparagraph (B), and in exer-
cising fiduciary responsibilities in any transition 
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to any 1 or more successor boards, the Sec-
retary shall— 
‘‘(i) conduct a referendum of eligible 
United States honey producers for the es-
tablishment of a marketing board solely for 
United States honey producers; 
‘‘(ii) conduct a referendum of eligible 
packers, importers, and handlers of honey 
for the establishment of a marketing board 
for packers, importers, and handlers of 
honey; 
‘‘(iii) notwithstanding the timing of 
the referenda required under clauses (i) 
and (ii) or of the establishment of any 1 or 
more successor boards pursuant to those 
referenda, ensure that the rights and inter-
ests of honey producers, importers, pack-
ers, and handlers of honey are equitably 
protected in any disposition of the assets, 
facilities, intellectual property, and pro-
grams of the existing Honey Board and in 
the transition to any 1 or more new suc-
cessor marketing boards; 
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‘‘(iv) ensure that the existing Honey 
Board continues in operation until such 
time as the Secretary determines that— 
‘‘(I) any 1 or more successor 
boards, if approved, are operational; 
and 
‘‘(II) the interests of producers, 
importers, packers, and handlers of 
honey can be equitably protected dur-
ing any remaining period in which a 
referendum on a successor board or 
the establishment of such a board is 
pending; and 
‘‘(v) discontinue collection of assess-
ments under the order establishing the ex-
isting Honey Board on the date the Sec-
retary requires that collections commence 
pursuant to an order approved in a ref-
erendum by eligible producers or proc-
essors and importers of honey. 
‘‘(D) HONEY BOARD REFERENDUM.—If 1 
or more orders are approved pursuant to para-
graph (C)— 
‘‘(i) the Secretary shall not be re-
quired to conduct a continuation ref-
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erendum on the order in existence on the 
date of enactment of this paragraph; and 
‘‘(ii) that order shall be terminated 
pursuant to the provisions of the order.’’. 
SEC. 10402. IDENTIFICATION OF HONEY. 
(a) IN GENERAL.—Section 203(h) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1622(h)) is amended— 
(1) by designating the first through sixth sen-
tences as paragraphs (1), (2)(A), (2)(B), (3), (4), 
and (5), respectively; and 
(2) by adding at the end the following: 
‘‘(6) IDENTIFICATION OF HONEY.— 
‘‘(A) IN GENERAL.—The use of a label or 
advertising material on, or in conjunction with, 
packaged honey that bears any official certifi-
cate of quality, grade mark or statement, con-
tinuous inspection mark or statement, sampling 
mark or statement, or any combination of the 
certificates, marks, or statements of the De-
partment of Agriculture is hereby prohibited 
under this Act unless there appears legibly and 
permanently in close proximity (such as on the 
same side(s) or surface(s)) to the certificate, 
mark, or statement, and in at least a com-
parable size, the 1 or more names of the 1 or 
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more countries of origin of the lot or container 
of honey, preceded by the words ‘Product of’ or 
other words of similar meaning. 
‘‘(B) VIOLATION.—A violation of the re-
quirements of subparagraph (A) may be deemed 
by the Secretary to be sufficient cause for de-
barment from the benefits of this Act only with 
respect to honey.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) take effect on the date that is 1 year after 
the date of enactment of this Act. 
SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF 
SPECIALTY CROPS. 
(a) GRANTS
AUTHORIZED.—The Secretary may 
make grants under this section to an eligible entity de-
scribed in subsection (b)— 
(1) to improve the cost-effective movement of 
specialty crops to local, regional, national, and inter-
national markets; and 
(2) to address regional intermodal transpor-
tation deficiencies that adversely affect the move-
ment of specialty crops to markets inside or outside 
the United States. 
(b) ELIGIBLE GRANT RECIPIENTS.—Grants may be 
made under this section to any of, or any combination of: 
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(1) State and local governments. 
(2) Grower cooperatives. 
(3) National, State, or regional organizations of 
producers, shippers, or carriers. 
(4) Other entities as determined to be appro-
priate by the Secretary. 
(c) MATCHING FUNDS.—The recipient of a grant 
under this section shall contribute an amount of non-Fed-
eral funds toward the project for which the grant is pro-
vided that is at least equal to the amount of grant funds 
received by the recipient under this section. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary for each of fiscal years 2008 
through 2012. 
SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS 
PRODUCERS. 
(a) IN GENERAL.—As soon as practicable after the 
date of enactment of this Act, the Secretary shall make 
payments to producers of the 2007 crop of asparagus for 
market loss resulting from imports during the 2004 
through 2007 crop years. 
(b) PAYMENT RATE.—The payment rate for a pay-
ment under this section shall be based on the reduction 
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in revenue received by asparagus producers associated 
with imports during the 2004 through 2007 crop years. 
(c) PAYMENT QUANTITY.—The payment quantity for 
asparagus for which the producers on a farm are eligible 
for payments under this section shall be equal to the aver-
age quantity of the 2003 crop of asparagus produced by 
producers on the farm. 
(d) FUNDING.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall make available $15,000,000 of 
the funds of the Commodity Credit Corporation to 
carry out a program to provide market loss pay-
ments to producers of asparagus under this section. 
(2) ALLOCATION.—Of the amount made avail-
able under paragraph (1), the Secretary shall use— 
(A) $7,500,000 to make payments to pro-
ducers of asparagus for the fresh market; and 
(B) $7,500,000 to make payments to pro-
ducers of asparagus for the processed or frozen 
market. 
TITLE XI—LIVESTOCK 
SEC. 11001. LIVESTOCK MANDATORY REPORTING. 
(a) WEB SITE IMPROVEMENTS
AND USER EDU-
CATION.— 
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(1) IN GENERAL.—Section 251(g) of the Agri-
cultural Marketing Act of 1946 (7 U.S.C. 1636(g)) 
is amended to read as follows: 
‘‘(g) ELECTRONIC REPORTING AND PUBLISHING.— 
‘‘(1) IN GENERAL.—The Secretary shall, to the 
maximum extent practicable, provide for the report-
ing and publishing of the information required under 
this subtitle by electronic means. 
‘‘(2) IMPROVEMENTS AND EDUCATION.— 
‘‘(A) 
ENHANCED
ELECTRONIC
PUB-
LISHING.—The Secretary shall develop and im-
plement an enhanced system of electronic pub-
lishing to disseminate information collected pur-
suant to this subtitle. Such system shall— 
‘‘(i) present information in a format 
that can be readily understood by pro-
ducers, packers, and other market partici-
pants; 
‘‘(ii) adhere to the publication dead-
lines in this subtitle; 
‘‘(iii) present information in charts 
and graphs, as appropriate; 
‘‘(iv) present comparative information 
for prior reporting periods, as the Sec-
retary considers appropriate; and 
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‘‘(v) be updated as soon as practicable 
after information is reported to the Sec-
retary. 
‘‘(B) EDUCATION.—The Secretary shall 
carry out a market news education program to 
educate the public and persons in the livestock 
and meat industries about— 
‘‘(i) usage of the system developed 
under subparagraph (A); and 
‘‘(ii) interpreting and understanding 
information collected and disseminated 
through such system.’’. 
(2) APPLICABILITY.— 
(A) ENHANCED
REPORTING.—The Sec-
retary of Agriculture shall develop and imple-
ment the system required under paragraph 
(2)(A) of section 251(g) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1636(g)), as 
amended by paragraph (1), not later than one 
year after the date on which the Secretary de-
termines sufficient funds have been appro-
priated pursuant to subsection (c). 
(B) CURRENT
SYSTEM.—Notwithstanding 
the amendment made by paragraph (1), the 
Secretary shall continue to use the information 
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format for disseminating information under 
subtitle B of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1621 et seq.) in effect on the 
date of the enactment of this Act at least until 
the date that is two years after the date on 
which the Secretary makes the determination 
referred to in subparagraph (A). 
(b) STUDY AND REPORT.— 
(1) STUDY.—The Secretary shall conduct a 
study on the effects of requiring packer processing 
plants to report to the Secretary information on 
wholesale pork cuts (including price and volume in-
formation), including— 
(A) the positive or negative economic ef-
fects on producers and consumers; and 
(B) the effects of a confidentiality require-
ment on mandatory reporting. 
(2) INFORMATION.—During the period pre-
ceding the submission of the report under paragraph 
(3), the Secretary may collect, and each packer proc-
essing plant shall provide, such information as is 
necessary to enable the Secretary to conduct the 
study required under paragraph (1). 
(3) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Secretary 
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shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate a 
report on the results of the study conducted under 
paragraph (1). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
SEC. 11002. COUNTRY OF ORIGIN LABELING. 
Subtitle D of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1638 et seq.) is amended— 
(1) in section 281(2)(A)— 
(A) in clause (v), by striking ‘‘and’’; 
(B) in clause (vi), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(vii) meat produced from goats; 
‘‘(viii) chicken, in whole and in part; 
‘‘(ix) ginseng; 
‘‘(x) pecans; and 
‘‘(xi) macadamia nuts.’’; 
(2) in section 282— 
(A) in subsection (a), by striking para-
graphs (2) and (3) and inserting the following: 
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‘‘(2) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR
BEEF, LAMB, PORK, CHICKEN, AND
GOAT 
MEAT.— 
‘‘(A) UNITED STATES COUNTRY OF ORI-
GIN.—A retailer of a covered commodity that is 
beef, lamb, pork, chicken, or goat meat may 
designate the covered commodity as exclusively 
having a United States country of origin only if 
the covered commodity is derived from an ani-
mal that was— 
‘‘(i) exclusively born, raised, and 
slaughtered in the United States; 
‘‘(ii) born and raised in Alaska or Ha-
waii and transported for a period of not 
more than 60 days through Canada to the 
United States and slaughtered in the 
United States; or 
‘‘(iii) present in the United States on 
or before July 15, 2008, and once present 
in the United States, remained continu-
ously in the United States. 
‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— 
‘‘(i) IN
GENERAL.—A retailer of a 
covered commodity that is beef, lamb, 
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pork, chicken, or goat meat that is derived 
from an animal that is— 
‘‘(I) not exclusively born, raised, 
and slaughtered in the United States, 
‘‘(II) born, raised, or slaughtered 
in the United States, and 
‘‘(III) not imported into the 
United States for immediate slaugh-
ter, 
may designate the country of origin of 
such covered commodity as all of the coun-
tries in which the animal may have been 
born, raised, or slaughtered. 
‘‘(ii) RELATION
TO
GENERAL
RE-
QUIREMENT.—Nothing in this subpara-
graph alters the mandatory requirement to 
inform consumers of the country of origin 
of covered commodities under paragraph 
(1). 
‘‘(C) IMPORTED FOR IMMEDIATE SLAUGH-
TER.—A retailer of a covered commodity that is 
beef, lamb, pork, chicken, or goat meat that is 
derived from an animal that is imported into 
the United States for immediate slaughter shall 
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designate the origin of such covered commodity 
as— 
‘‘(i) the country from which the ani-
mal was imported; and 
‘‘(ii) the United States. 
‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A 
retailer of a covered commodity that is beef, 
lamb, pork, chicken, or goat meat that is de-
rived from an animal that is not born, raised, 
or slaughtered in the United States shall des-
ignate a country other than the United States 
as the country of origin of such commodity. 
‘‘(E) GROUND BEEF, PORK, LAMB, CHICK-
EN, AND GOAT.—The notice of country of origin 
for ground beef, ground pork, ground lamb, 
ground chicken, or ground goat shall include— 
‘‘(i) a list of all countries of origin of 
such ground beef, ground pork, ground 
lamb, ground chicken, or ground goat; or 
‘‘(ii) a list of all reasonably possible 
countries of origin of such ground beef, 
ground pork, ground lamb, ground chicken, 
or ground goat. 
‘‘(3) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR FISH.— 
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distinguish between wild fish and farm-raised 
fish. 
‘‘(4) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR
PERISHABLE
AGRICULTURAL
COMMODITIES, 
GINSENG, 
PEANUTS, 
PECANS, 
AND
MACADAMIA 
NUTS.— 
‘‘(A) IN GENERAL.—A retailer of a covered 
commodity that is a perishable agricultural 
commodity, ginseng, peanut, pecan, or maca-
damia nut may designate the covered com-
modity as having a United States country of or-
igin only if the covered commodity is exclusively 
produced in the United States. 
‘‘(B) STATE, REGION, LOCALITY OF THE 
UNITED
STATES.—With respect to a covered 
commodity that is a perishable agricultural 
commodity, ginseng, peanut, pecan, or maca-
damia nut produced exclusively in the United 
States, designation by a retailer of the State, 
region, or locality of the United States where 
such commodity was produced shall be suffi-
cient to identify the United States as the coun-
try of origin.’’; and 
(B) by striking subsection (d) and insert-
ing the following: 
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‘‘(d) AUDIT VERIFICATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Secretary may conduct 
an audit of any person that prepares, stores, han-
dles, or distributes a covered commodity for retail 
sale to verify compliance with this subtitle (including 
the regulations promulgated under section 284(b)). 
‘‘(2) RECORD REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A person subject to 
an audit under paragraph (1) shall provide the 
Secretary with verification of the country of ori-
gin of covered commodities. Records maintained 
in the course of the normal conduct of the busi-
ness of such person, including animal health pa-
pers, import or customs documents, or producer 
affidavits, may serve as such verification. 
‘‘(B) PROHIBITION ON REQUIREMENT OF 
ADDITIONAL RECORDS.—The Secretary may not 
require a person that prepares, stores, handles, 
or distributes a covered commodity to maintain 
a record of the country of origin of a covered 
commodity other than those maintained in the 
course of the normal conduct of the business of 
such person.’’; and 
(3) in section 283— 
(A) by striking subsections (a) and (c); 
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(B) by redesignating subsection (b) as sub-
section (a); 
(C) in subsection (a) (as so redesignated), 
by striking ‘‘retailer’’ and inserting ‘‘retailer or 
person engaged in the business of supplying a 
covered commodity to a retailer’’; and 
(D) by adding at the end the following new 
subsection: 
‘‘(b) FINES.—If, on completion of the 30-day period 
described in subsection (a)(2), the Secretary determines 
that the retailer or person engaged in the business of sup-
plying a covered commodity to a retailer has— 
‘‘(1) not made a good faith effort to comply 
with section 282, and 
‘‘(2) continues to willfully violate section 282 
with respect to the violation about which the retailer 
or person received notification under subsection 
(a)(1), 
after providing notice and an opportunity for a hearing 
before the Secretary with respect to the violation, the Sec-
retary may fine the retailer or person in an amount of 
not more than $1,000 for each violation.’’. 
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SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 
DEFINITIONS. 
Section 3 of the Agricultural Fair Practices Act of 
1967 (7 U.S.C. 2302) is amended— 
(1) by striking ‘‘When used in this Act—’’ and 
inserting ‘‘In this Act:’’; 
(2) in subsection (a)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (4) as clauses (i) through (iv), respec-
tively; and 
(B) in clause (iv) (as so redesignated), by 
striking ‘‘clause (1), (2), or (3) of this para-
graph’’ and inserting ‘‘clause (i), (ii), or (iii)’’; 
(3) by striking subsection (d); 
(4) by redesignating subsections (a), (b), (c), 
and (e) as paragraphs (3), (4), (2), (1), respectively, 
indenting appropriately, and moving those para-
graphs so as to appear in numerical order; 
(5) in each paragraph (as so redesignated) that 
does not have a heading, by inserting a heading, in 
the same style as the heading in the amendment 
made by paragraph (6), the text of which is com-
prised of the term defined in the paragraph; 
(6) in paragraph (2) (as so redesignated)— 
(A) by striking ‘‘The term ‘association of 
producers’ means’’ and inserting the following: 
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‘‘(2) ASSOCIATION OF PRODUCERS.— 
‘‘(A) IN GENERAL.—The term ‘association 
of producers’ means’’; and 
(B) by adding at the end the following: 
‘‘(B) INCLUSION.—The term ‘association 
of producers’ includes an organization whose 
membership is exclusively limited to agricultural 
producers and dedicated to promoting the com-
mon interest and general welfare of producers 
of agricultural products.’’; and 
(7) in paragraph (3) (as so redesignated)— 
(A) by striking ‘‘The term’’ and inserting 
the following: 
‘‘(3) HANDLER.— 
‘‘(A) IN GENERAL.—The term’’; and 
(B) by inserting after clause (iv) of sub-
paragraph (A) (as redesignated by subpara-
graph (A) and paragraph (2)) the following: 
‘‘(B) EXCLUSION.—The term ‘handler’ 
does not include a person, other than a packer 
(as defined in section 201 of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 191)), that 
provides custom feeding services for a pro-
ducer.’’. 
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SEC. 11004. ANNUAL REPORT. 
(a) IN GENERAL.—The Packers and Stockyards Act, 
1921, is amended— 
(1) by redesignating section 416 (7 U.S.C. 229) 
as section 417; and 
(2) by inserting after section 415 (7 U.S.C. 
228d) the following: 
‘‘SEC. 416. ANNUAL REPORT. 
‘‘(a) IN GENERAL.—Not later than March 1 of each 
year, the Secretary shall submit to Congress and make 
publicly available a report that— 
‘‘(1) states, for the preceding year, separately 
for livestock and poultry and separately by enforce-
ment area category (financial, trade practice, or 
competitive acts and practices), with respect to in-
vestigations into possible violations of this Act— 
‘‘(A) the number of investigations opened; 
‘‘(B) the number of investigations that 
were closed or settled without a referral to the 
General Counsel of the Department of Agri-
culture; 
‘‘(C) for investigations described in sub-
paragraph (B), the length of time from initi-
ation of the investigation to when the investiga-
tion was closed or settled without the filing of 
an enforcement complaint; 
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‘‘(D) the number of investigations that re-
sulted in referral to the General Counsel of the 
Department of Agriculture for further action, 
the number of such referrals resolved without 
administrative enforcement action, and the 
number of enforcement actions filed by the 
General Counsel; 
‘‘(E) for referrals to the General Counsel 
that resulted in an administrative enforcement 
action being filed, the length of time from the 
referral to the filing of the administrative ac-
tion; 
‘‘(F) for referrals to the General Counsel 
that resulted in an administrative enforcement 
action being filed, the length of time from filing 
to resolution of the administrative enforcement 
action; 
‘‘(G) the number of investigations that re-
sulted in referral to the Department of Justice 
for further action, and the number of civil en-
forcement actions filed by the Department of 
Justice on behalf of the Secretary pursuant to 
such a referral; 
‘‘(H) for referrals that resulted in a civil 
enforcement action being filed by the Depart-
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ment of Justice, the length of time from the re-
ferral to the filing of the enforcement action; 
‘‘(I) for referrals that resulted in a civil en-
forcement action being filed by the Department 
of Justice, the length of time from the filing of 
the enforcement action to resolution; and 
‘‘(J) the average civil penalty imposed in 
administrative or civil enforcement actions for 
violations of this Act, and the total amount of 
civil penalties imposed in all such enforcement 
actions; and 
‘‘(2) includes any other additional information 
the Secretary considers important to include in the 
annual report. 
‘‘(b) FORMAT
OF INFORMATION PROVIDED.—For 
subparagraphs (C), (E), (F), and (H) of subsection (a)(1), 
the Secretary may, if appropriate due to the number of 
complaints for a given category, provide summary statis-
tics (including range, maximum, minimum, mean, and av-
erage times) and graphical representations.’’. 
(b) SUNSET.—Effective September 30, 2012, section 
416 of the Packers and Stockyards Act, 1921, as added 
by subsection (a)(2), is repealed. 
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SEC. 11005. PRODUCTION CONTRACTS. 
Title II of the Packers and Stockyards Act, 1921 (7 
U.S.C. 198 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 208. PRODUCTION CONTRACTS. 
‘‘(a) RIGHT OF CONTRACT PRODUCERS TO CANCEL 
PRODUCTION CONTRACTS.— 
‘‘(1) IN GENERAL.—A poultry grower or swine 
production contract grower may cancel a poultry 
growing arrangement or swine production contract 
by mailing a cancellation notice to the live poultry 
dealer or swine contractor not later than the later 
of— 
‘‘(A) the date that is 3 business days after 
the date on which the poultry growing arrange-
ment or swine production contract is executed; 
or 
‘‘(B) any cancellation date specified in the 
poultry growing arrangement or swine produc-
tion contract. 
‘‘(2) DISCLOSURE.—A poultry growing arrange-
ment or swine production contract shall clearly dis-
close— 
‘‘(A) the right of the poultry grower or 
swine production contract grower to cancel the 
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poultry growing arrangement or swine produc-
tion contract; 
‘‘(B) the method by which the poultry 
grower or swine production contract grower 
may cancel the poultry growing arrangement or 
swine production contract; and 
‘‘(C) the deadline for canceling the poultry 
growing arrangement or swine production con-
tract. 
‘‘(b) REQUIRED DISCLOSURE OF ADDITIONAL CAP-
ITAL INVESTMENTS IN PRODUCTION CONTRACTS.— 
‘‘(1) IN GENERAL.—A poultry growing arrange-
ment or swine production contract shall contain on 
the first page a statement identified as ‘Additional 
Capital Investments Disclosure Statement’, which 
shall conspicuously state that additional large capital 
investments may be required of the poultry grower 
or swine production contract grower during the term 
of the poultry growing arrangement or swine produc-
tion contract. 
‘‘(2) APPLICATION.—Paragraph (1) shall apply 
to any poultry growing arrangement or swine pro-
duction contract entered into, amended, altered, 
modified, renewed, or extended after the date of the 
enactment of this section. 
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‘‘SEC. 209. CHOICE OF LAW AND VENUE. 
‘‘(a) LOCATION OF FORUM.—The forum for resolving 
any dispute among the parties to a poultry growing ar-
rangement or swine production or marketing contract that 
arises out of the arrangement or contract shall be located 
in the Federal judicial district in which the principle part 
of the performance takes place under the arrangement or 
contract. 
‘‘(b) CHOICE OF LAW.—A poultry growing arrange-
ment or swine production or marketing contract may 
specify which State’s law is to apply to issues governed 
by State law in any dispute arising out of the arrangement 
or contract, except to the extent that doing so is prohibited 
by the law of the State in which the principal part of the 
performance takes place under the arrangement or con-
tract. 
‘‘SEC. 210. ARBITRATION. 
‘‘(a) IN GENERAL.—Any livestock or poultry contract 
that contains a provision requiring the use of arbitration 
to resolve any controversy that may arise under the con-
tract shall contain a provision that allows a producer or 
grower, prior to entering the contract to decline to be 
bound by the arbitration provision. 
‘‘(b) DISCLOSURE.—Any livestock or poultry contract 
that contains a provision requiring the use of arbitration 
shall contain terms that conspicuously disclose the right 
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of the contract producer or grower, prior to entering the 
contract, to decline the requirement to use arbitration to 
resolve any controversy that may arise under the livestock 
or poultry contract. 
‘‘(c) DISPUTE RESOLUTION.—Any contract producer 
or grower that declines a requirement of arbitration pur-
suant to subsection (b) has the right, to nonetheless seek 
to resolve any controversy that may arise under the live-
stock or poultry contract, if, after the controversy arises, 
both parties consent in writing to use arbitration to settle 
the controversy. 
‘‘(d) APPLICATION.—Subsections (a) (b) and (c) shall 
apply to any contract entered into, amended, altered, 
modified, renewed, or extended after the date of the enact-
ment of the Food, Conservation, and Energy Act of 2008 
. 
‘‘(e) UNLAWFUL PRACTICE.—Any action by or on be-
half of a packer, swine contractor, or live poultry dealer 
that violates this section (including any action that has 
the intent or effect of limiting the ability of a producer 
or grower to freely make a choice described in subsection 
(b)) is an unlawful practice under this Act. 
‘‘(f) REGULATIONS.—The Secretary shall promulgate 
regulations to— 
‘‘(1) carry out this section; and 
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‘‘(2) establish criteria that the Secretary will 
consider in determining whether the arbitration 
process provided in a contract provides a meaningful 
opportunity for the grower or producer to participate 
fully in the arbitration process.’’. 
SEC. 11006. REGULATIONS. 
As soon as practicable, but not later than 2 years 
after the date of the enactment of this Act, the Secretary 
of Agriculture shall promulgate regulations with respect 
to the Packers and Stockyards Act, 1921 (7 U.S.C. 181 
et seq.) to establish criteria that the Secretary will con-
sider in determining— 
(1) whether an undue or unreasonable pref-
erence or advantage has occurred in violation of 
such Act; 
(2) whether a live poultry dealer has provided 
reasonable notice to poultry growers of any suspen-
sion of the delivery of birds under a poultry growing 
arrangement; 
(3) when a requirement of additional capital in-
vestments over the life of a poultry growing arrange-
ment or swine production contract constitutes a vio-
lation of such Act; and 
(4) if a live poultry dealer or swine contractor 
has provided a reasonable period of time for a poul-
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try grower or a swine production contract grower to 
remedy a breach of contract that could lead to ter-
mination of the poultry growing arrangement or 
swine production contract. 
SEC. 
11007. 
SENSE 
OF 
CONGRESS 
REGARDING 
PSEUDORABIES ERADICATION PROGRAM. 
It is the sense of Congress that— 
(1) the Secretary of Agriculture should recog-
nize the threat feral swine pose to the domestic 
swine population and the entire livestock industry; 
(2) keeping the United States commercial swine 
herd free of pseudorabies is essential to maintaining 
and growing pork export markets; 
(3) the establishment and continued support of 
a swine surveillance system will assist the swine in-
dustry in the monitoring, surveillance, and eradi-
cation of pseudorabies; and 
(4) pseudorabies eradication is a high priority 
that the Secretary should carry out under the au-
thorities of the Animal Health Protection Act. 
SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE 
FEVER TICK ERADICATION PROGRAM. 
It is the sense of Congress that— 
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(1) the cattle fever tick and the southern cattle 
tick are vectors of the causal agent of babesiosis, a 
severe and often fatal disease of cattle; and 
(2) implementing a national strategic plan for 
the cattle fever tick eradication program is a high 
priority that the Secretary of Agriculture should 
carry out in order to— 
(A) prevent the entry of cattle fever ticks 
into the United States; 
(B) enhance and maintain an effective sur-
veillance program to rapidly detect any cattle 
fever tick incursions; and 
(C) research, identify, and procure the 
tools and knowledge necessary to prevent and 
eradicate cattle fever ticks in the United States. 
SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT 
CENTER. 
(a) FUNDING.—Section 375(e)(6) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2008j(e)(6)) 
is amended by striking subparagraphs (B) and (C) and 
inserting the following: 
‘‘(B) 
MANDATORY
FUNDING.—Of 
the 
funds of the Commodity Credit Corporation, the 
Secretary shall use to carry out this section 
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$1,000,000 for fiscal year 2008, to remain 
available until expended. 
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to the Secretary to carry out this section 
$10,000,000 for each of fiscal years 2008 
through 2012.’’. 
(b) REPEAL OF REQUIREMENT TO PRIVATIZE RE-
VOLVING FUND.— 
(1) IN GENERAL.—Section 375 of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
2008j) is amended by striking subsection (j). 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) takes effect on May 1, 2007. 
SEC. 11010. TRICHINAE CERTIFICATION PROGRAM. 
(a) VOLUNTARY TRICHINAE CERTIFICATION.— 
(1) ESTABLISHMENT.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary of Agriculture shall establish a voluntary 
trichinae certification program. Such program shall 
include the facilitation of the export of pork prod-
ucts and certification services related to such prod-
ucts. 
(2) REGULATIONS.—The Secretary shall issue 
final regulations to implement the program under 
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paragraph (1) not later than 90 days after the date 
of the enactment of this Act. 
(3) REPORT.—If final regulations are not pub-
lished in accordance with paragraph (2) within 90 
days of the date of the enactment of this Act, the 
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report containing— 
(A) an explanation of why the final regula-
tions have not been issued in accordance with 
paragraph (2); and 
(B) the date on which the Secretary ex-
pects to issue such final regulations. 
(b) FUNDING.—Subject to the availability of appro-
priations under subsection (d)(1)(A) of section 10405 of 
the Animal Health Protection Act (7 U.S.C. 8304), as 
added by subsection (c), the Secretary shall use not less 
than $6,200,000 of the funds made available under such 
subsection to carry out subsection (a). 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
10405 of the Animal Health Protection Act (7 U.S.C. 
8304) is amended by adding at the end the following new 
subsection: 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— 
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‘‘(1) IN GENERAL.—There is authorized to be 
appropriated— 
‘‘(A) $1,500,000 for each of fiscal years 
2008 through 2012 to carry out section 11010 
of the Food, Conservation, and Energy Act of 
2008; and 
‘‘(B) such sums as may be necessary for 
each of fiscal years 2008 through 2012 to carry 
out this section. 
‘‘(2) 
AVAILABILITY.—Funds 
appropriated 
under paragraph (1) shall remain available until ex-
pended.’’. 
SEC. 11011. LOW PATHOGENIC DISEASES. 
The Animal Health Protection Act (7 U.S.C. 8301 
et seq.) is amended— 
(1) in section 10407(d)(2)(C) (7 U.S.C. 
8306(d)(2)(C)), by striking ‘‘of longer than 60 
days’’; 
(2) in section 10409(b) (7 U.S.C. 8308(b))— 
(A) by redesignating paragraph (2) as 
paragraph (3); 
(B) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) SPECIFIC COOPERATIVE PROGRAMS.—The 
Secretary shall compensate industry participants and 
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State agencies that cooperate with the Secretary in 
carrying out operations and measures under sub-
section (a) for 100 percent of eligible costs relating 
to cooperative programs involving Federal, State, 
and industry participants to control diseases of low 
pathogenicity in accordance with regulations issued 
by the Secretary.’’; and 
(C) in paragraph (3) (as so redesignated), 
by striking ‘‘of longer than 60 days’’; and 
(3) 
in 
section 
10417(b)(3) 
(7 
U.S.C. 
8316(b)(3)), by striking ‘‘of longer than 60 days’’. 
SEC. 11012. ANIMAL PROTECTION. 
(a) WILLFUL VIOLATIONS.—Section 10414(b)(1)(A) 
of the Animal Health Protection Act (7 U.S.C. 
8316(b)(1)(A)) is amended by striking clause (iii) and in-
serting the following: 
‘‘(iii) for all violations adjudicated in 
a single proceeding— 
‘‘(I) $500,000 if the violations do 
not include a willful violation; or 
‘‘(II) $1,000,000 if the violations 
include 1 or more willful violations.’’. 
(b) SUBPOENA AUTHORITY.—Section 10415(a)(2) of 
the Animal Health Protection Act (7 U.S.C. 8314) is 
amended 
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(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) IN
GENERAL.—The Secretary shall 
have the power to subpoena the attendance and 
testimony of any witness, the production of all 
evidence (including books, papers, documents, 
electronically stored information, and other tan-
gible things that constitute or contain evi-
dence), or to require the person to whom the 
subpoena is directed to permit the inspection of 
premises relating to the administration or en-
forcement of this title or any matter under in-
vestigation in connection with this title.’’; 
(2) in subparagraph (B), by striking ‘‘documen-
tary’’; and 
(3) in subparagraph (C)— 
(A) in clause (i), by striking ‘‘testimony of 
any witness and the production of documentary 
evidence’’ and inserting ‘‘testimony of any wit-
ness, the production of evidence, or the inspec-
tion of premises’’; and 
(B) in clause (ii), by striking ‘‘question or 
to produce documentary evidence’’ and inserting 
‘‘question, produce evidence, or permit the in-
spection of premises’’. 
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SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 
(a) IN GENERAL.—The Secretary of Agriculture may 
enter into a cooperative agreement with an eligible entity 
to carry out a project under a national aquatic animal 
health plan under the authority of the Secretary under 
section 10411 of the Animal Health Protection Act (7 
U.S.C. 8310) for the purpose of detecting, controlling, or 
eradicating diseases of aquaculture species and promoting 
species-specific best management practices. 
(b) COOPERATIVE AGREEMENTS BETWEEN ELIGI-
BLE ENTITIES AND THE SECRETARY.— 
(1) DUTIES.—As a condition of entering into a 
cooperative agreement with the Secretary under this 
section, an eligible entity shall agree to— 
(A) assume responsibility for the non-Fed-
eral share of the cost of carrying out the project 
under the national aquatic health plan, as de-
termined by the Secretary in accordance with 
paragraph (2); and 
(B) act in accordance with applicable dis-
ease and species specific best management prac-
tices relating to activities to be carried out 
under such project. 
(2) 
NON-FEDERAL
SHARE.—The 
Secretary 
shall determine the non-Federal share of the cost of 
carrying out a project under the national aquatic 
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health plan on a case-by-case basis for each such 
project. Such non-Federal share may be provided in 
cash or in-kind. 
(c) APPLICABILITY OF OTHER LAWS.—In carrying 
out this section, the Secretary may make use of the au-
thorities under the Animal Health Protection Act (7 
U.S.C. 8301 et seq.), including the authority to carry out 
operations and measures to detect, control, and eradicate 
pests and diseases and the authority to pay claims arising 
out of the destruction of any animal, article, or means of 
conveyance. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated such sums as may be nec-
essary to carry out this section for each of fiscal years 
2008 through 2012. 
(e) ELIGIBLE ENTITY DEFINED.—In this section, the 
term ‘‘eligible entity’’ means a State, a political subdivi-
sion of a State, Indian tribe, or other appropriate entity, 
as determined by the Secretary of Agriculture. 
SEC. 11014. STUDY ON BIOENERGY OPERATIONS. 
(a) STUDY.—The Secretary of Agriculture shall con-
duct a study to evaluate the role of animal manure as a 
source of fertilizer and its potential additional uses. Such 
study shall include— 
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(1) a determination of the extent to which ani-
mal manure is utilized as fertilizer in agricultural 
operations by type (including species and agronomic 
practices employed) and size; 
(2) an evaluation of the potential impact on 
consumers and on agricultural operations (by size) 
resulting from limitations being placed on the utili-
zation of animal manure as fertilizer; and 
(3) an evaluation of the effects on agriculture 
production contributable to the increased competi-
tion for animal manure use due to bioenergy produc-
tion, including as a feedstock or a replacement for 
fossil fuels. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate the results of the study con-
ducted under subsection (a). 
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SEC. 11015. INTERSTATE SHIPMENT OF MEAT AND POUL-
TRY INSPECTED BY FEDERAL AND STATE 
AGENCIES FOR CERTAIN SMALL ESTABLISH-
MENTS. 
(a) MEAT AND MEAT PRODUCTS.—The Federal Meat 
Inspection Act (21 U.S.C. 601 et seq.) is amended by add-
ing at the end the following: 
‘‘TITLE V—INSPECTIONS BY 
FEDERAL AND STATE AGENCIES 
‘‘SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY 
FEDERAL AND STATE AGENCIES FOR CER-
TAIN SMALL ESTABLISHMENTS. 
‘‘(a) DEFINITIONS.— 
‘‘(1) APPROPRIATE STATE AGENCY.—The term 
‘appropriate State agency’ means a State agency de-
scribed in section 301(b). 
‘‘(2) DESIGNATED
PERSONNEL.—The term 
‘designated personnel’ means inspection personnel of 
a State agency that have undergone all necessary in-
spection training and certification to assist the Sec-
retary in the administration and enforcement of this 
Act, including rules and regulations issued under 
this Act. 
‘‘(3) ELIGIBLE
ESTABLISHMENT.—The term 
‘eligible establishment’ means an establishment that 
is in compliance with— 
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state commerce a Federal mark, stamp, tag, or label 
of inspection, if— 
‘‘(A) the carcass, portion of carcass, or 
meat item qualifies for the mark, stamp, tag, or 
label of inspection under the requirements of 
this Act; 
‘‘(B) the establishment is an eligible estab-
lishment; and 
‘‘(C) inspection services for the establish-
ment are provided by designated personnel. 
‘‘(2) PROHIBITED ESTABLISHMENTS.—In car-
rying out paragraph (1), the Secretary, in coordina-
tion with an appropriate State agency, shall not se-
lect an establishment that— 
‘‘(A) on average, employs more than 25 
employees (including supervisory and non-
supervisory employees), as defined by the Sec-
retary; 
‘‘(B) as of the date of the enactment of 
this section, ships in interstate commerce car-
casses, portions of carcasses, or meat items that 
are inspected by the Secretary in accordance 
with this Act; 
‘‘(C)(i) is a Federal establishment; 
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‘‘(ii) was a Federal establishment that was 
reorganized on a later date under the same 
name or a different name or person by the per-
son, firm, or corporation that controlled the es-
tablishment as of the date of the enactment of 
this section; or 
‘‘(iii) was a State establishment as of the 
date of the enactment of this section that— 
‘‘(I) as of the date of the enactment 
of this section, employed more than 25 em-
ployees; and 
‘‘(II) was reorganized on a later date 
by the person, firm, or corporation that 
controlled the establishment as of the date 
of the enactment of this section; 
‘‘(D) is in violation of this Act; 
‘‘(E) is located in a State that does not 
have a State inspection program; or 
‘‘(F) is the subject of a transition carried 
out in accordance with a procedure developed 
by the Secretary under paragraph (3)(A). 
‘‘(3) ESTABLISHMENTS
THAT
EMPLOY
MORE 
THAN 25 EMPLOYEES.— 
‘‘(A) DEVELOPMENT
OF
PROCEDURE.— 
The Secretary may develop a procedure to tran-
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sition to a Federal establishment any establish-
ment under this section that, on average, con-
sistently employs more than 25 employees. 
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISH-
MENTS.— 
‘‘(i) IN GENERAL.—A State establish-
ment that employs more than 25 employ-
ees but less than 35 employees as of the 
date of the enactment of this section may 
be selected as a selected establishment 
under this subsection. 
‘‘(ii) PROCEDURES.—A State estab-
lishment shall be subject to the procedures 
established under subparagraph (A) begin-
ning on the date that is 3 years after the 
effective date described in subsection (j). 
‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Sec-
retary shall reimburse a State for costs related to the in-
spection of selected establishments in the State in accord-
ance with Federal requirements in an amount of not less 
than 60 percent of eligible State costs. 
‘‘(d) COORDINATION
BETWEEN
FEDERAL
AND 
STATE AGENCIES.— 
‘‘(1) IN GENERAL.—The Secretary shall des-
ignate an employee of the Federal Government as 
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State coordinator for each appropriate State agen-
cy— 
‘‘(A) to provide oversight and enforcement 
of this title; and 
‘‘(B) to oversee the training and inspection 
activities of designated personnel of the State 
agency. 
‘‘(2) SUPERVISION.—A State coordinator shall 
be under the direct supervision of the Secretary. 
‘‘(3) DUTIES OF STATE COORDINATOR.— 
‘‘(A) IN
GENERAL.—A State coordinator 
shall visit selected establishments with a fre-
quency that is appropriate to ensure that se-
lected establishments are operating in a manner 
that is consistent with this Act (including regu-
lations and policies under this Act). 
‘‘(B) QUARTERLY REPORTS.—A State co-
ordinator shall, on a quarterly basis, submit to 
the Secretary a report that describes the status 
of each selected establishment that is under the 
jurisdiction of the State coordinator with re-
spect to the level of compliance of each selected 
establishment with the requirements of this Act. 
‘‘(C) IMMEDIATE NOTIFICATION REQUIRE-
MENT.—If a State coordinator determines that 
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any selected establishment that is under the ju-
risdiction of the State coordinator is in violation 
of any requirement of this Act, the State coor-
dinator shall— 
‘‘(i) immediately notify the Secretary 
of the violation; and 
‘‘(ii) deselect the selected establish-
ment or suspend inspection at the selected 
establishment. 
‘‘(4) PERFORMANCE
EVALUATIONS.—Perform-
ance evaluations of State coordinators designated 
under this subsection shall be conducted by the Sec-
retary as part of the Federal agency management 
control system. 
‘‘(e) AUDITS.— 
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPEC-
TOR
GENERAL
OF
THE
DEPARTMENT
OF
AGRI-
CULTURE.—Not later than 2 years after the effec-
tive date described in subsection (j), and not less 
often than every 3 years thereafter, the Inspector 
General of the Department of Agriculture shall con-
duct an audit of each activity taken by the Secretary 
under this section for the period covered by the 
audit to determine compliance with this section. 
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‘‘(2) AUDIT
CONDUCTED
BY
COMPTROLLER 
GENERAL
OF
THE
UNITED
STATES.—Not earlier 
than 3 years, nor later than 5 years, after the date 
of the enactment of this section, the Comptroller 
General of the United States shall conduct an audit 
of the implementation of this section to determine— 
‘‘(A) the effectiveness of the implementa-
tion of this section; and 
‘‘(B) the number of selected establishments 
selected by the Secretary to ship carcasses, por-
tions of carcasses, or meat items under this sec-
tion. 
‘‘(f) TECHNICAL ASSISTANCE DIVISION.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the effective date described in subsection 
(j), the Secretary shall establish in the Food Safety 
and Inspection Service of the Department of Agri-
culture a technical assistance division to coordinate 
the initiatives of any other appropriate agency of the 
Department of Agriculture to provide— 
‘‘(A) outreach, education, and training to 
very small or certain small establishments (as 
defined by the Secretary); and 
‘‘(B) grants to appropriate State agencies 
to provide outreach, technical assistance, edu-
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cation, and training to very small or certain 
small establishments (as defined by the Sec-
retary). 
‘‘(2) PERSONNEL.—The technical assistance di-
vision shall be comprised of individuals that, as de-
termined by the Secretary— 
‘‘(A) are of a quantity sufficient to carry 
out the duties of the technical assistance divi-
sion; and 
‘‘(B) possess appropriate qualifications and 
expertise relating to the duties of the technical 
assistance division. 
‘‘(g) TRANSITION GRANTS.—The Secretary may pro-
vide grants to appropriate State agencies to assist the ap-
propriate State agencies in helping establishments covered 
by title III to transition to selected establishments. 
‘‘(h) VIOLATIONS.—Any selected establishment that 
the Secretary determines to be in violation of any require-
ment of this Act shall be transitioned to a Federal estab-
lishment in accordance with a procedure developed by the 
Secretary under subsection (b)(3)(A). 
‘‘(i) EFFECT.—Nothing in this section limits the ju-
risdiction of the Secretary with respect to the regulation 
of meat and meat products under this Act. 
‘‘(j) EFFECTIVE DATE.— 
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‘‘(1) IN GENERAL.—This section takes effect on 
the date on which the Secretary, after providing a 
period of public comment (including through the 
conduct of public meetings or hearings), promulgates 
final regulations to carry out this section. 
‘‘(2) 
REQUIREMENT.—Not 
later 
than 
months after the date of the enactment of this sec-
tion, the Secretary shall promulgate final regulations 
in accordance with paragraph (1).’’. 
(b) POULTRY AND POULTRY PRODUCTS.—The Poul-
try Products Inspection Act (21 U.S.C. 451 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED 
BY FEDERAL AND STATE AGENCIES FOR CER-
TAIN SMALL ESTABLISHMENTS. 
‘‘(a) DEFINITIONS.— 
‘‘(1) APPROPRIATE STATE AGENCY.—The term 
‘appropriate State agency’ means a State agency de-
scribed in section 5(a)(1). 
‘‘(2) DESIGNATED
PERSONNEL.—The term 
‘designated personnel’ means inspection personnel of 
a State agency that have undergone all necessary in-
spection training and certification to assist the Sec-
retary in the administration and enforcement of this 
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Act, including rules and regulations issued under 
this Act. 
‘‘(3) ELIGIBLE
ESTABLISHMENT.—The term 
‘eligible establishment’ means an establishment that 
is in compliance with— 
‘‘(A) the State inspection program of the 
State in which the establishment is located; and 
‘‘(B) this Act, including rules and regula-
tions issued under this Act. 
‘‘(4) POULTRY ITEM.—The term ‘poultry item’ 
means— 
‘‘(A) a portion of poultry; and 
‘‘(B) a poultry product. 
‘‘(5) SELECTED
ESTABLISHMENT.—The term 
‘selected establishment’ means an eligible establish-
ment that is selected by the Secretary, in coordina-
tion with the appropriate State agency of the State 
in which the eligible establishment is located, under 
subsection (b) to ship poultry items in interstate 
commerce. 
‘‘(b) AUTHORITY OF SECRETARY TO ALLOW SHIP-
MENTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary, in coordination with the appropriate 
State agency of the State in which an establishment 
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is located, may select the establishment to ship poul-
try items in interstate commerce, and place on each 
poultry item shipped in interstate commerce a Fed-
eral mark, stamp, tag, or label of inspection, if— 
‘‘(A) the poultry item qualifies for the Fed-
eral mark, stamp, tag, or label of inspection 
under the requirements of this Act; 
‘‘(B) the establishment is an eligible estab-
lishment; and 
‘‘(C) inspection services for the establish-
ment are provided by designated personnel. 
‘‘(2) PROHIBITED ESTABLISHMENTS.—In car-
rying out paragraph (1), the Secretary, in coordina-
tion with an appropriate State agency, shall not se-
lect an establishment that— 
‘‘(A) on average, employs more than 25 
employees (including supervisory and non-
supervisory employees), as defined by the Sec-
retary; 
‘‘(B) as of the date of the enactment of 
this section, ships in interstate commerce car-
casses, portions of carcasses, or poultry items 
that are inspected by the Secretary in accord-
ance with this Act; 
‘‘(C)(i) is a Federal establishment; 
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‘‘(ii) was a Federal establishment as of the 
date of the enactment of this section, and was 
reorganized on a later date under the same 
name or a different name or person by the per-
son, firm, or corporation that controlled the es-
tablishment as of the date of the enactment of 
this section; or 
‘‘(iii) was a State establishment as of the 
date of the enactment of this section that— 
‘‘(I) as of the date of the enactment 
of this section, employed more than 25 em-
ployees; and 
‘‘(II) was reorganized on a later date 
by the person, firm, or corporation that 
controlled the establishment as of the date 
of the enactment of this section; 
‘‘(D) is in violation of this Act; 
‘‘(E) is located in a State that does not 
have a State inspection program; or 
‘‘(F) is the subject of a transition carried 
out in accordance with a procedure developed 
by the Secretary under paragraph (3)(A). 
‘‘(3) ESTABLISHMENTS
THAT
EMPLOY
MORE 
THAN 25 EMPLOYEES.— 
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‘‘(A) DEVELOPMENT
OF
PROCEDURE.— 
The Secretary may develop a procedure to tran-
sition to a Federal establishment any establish-
ment under this section that, on average, con-
sistently employs more than 25 employees. 
‘‘(B) ELIGIBILITY OF CERTAIN ESTABLISH-
MENTS.— 
‘‘(i) IN GENERAL.—A State establish-
ment that employs more than 25 employ-
ees but less than 35 employees as of the 
date of the enactment of this section may 
be selected as a selected establishment 
under this subsection. 
‘‘(ii) PROCEDURES.—A State estab-
lishment shall be subject to the procedures 
established under subparagraph (A) begin-
ning on the date that is 3 years after the 
effective date described in subsection (i). 
‘‘(c) REIMBURSEMENT OF STATE COSTS.—The Sec-
retary shall reimburse a State for costs related to the in-
spection of selected establishments in the State in accord-
ance with Federal requirements in an amount of not less 
than 60 percent of eligible State costs. 
‘‘(d) COORDINATION
BETWEEN
FEDERAL
AND 
STATE AGENCIES.— 
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‘‘(1) IN GENERAL.—The Secretary shall des-
ignate an employee of the Federal Government as 
State coordinator for each appropriate State agen-
cy— 
‘‘(A) to provide oversight and enforcement 
of this section; and 
‘‘(B) to oversee the training and inspection 
activities of designated personnel of the State 
agency. 
‘‘(2) SUPERVISION.—A State coordinator shall 
be under the direct supervision of the Secretary. 
‘‘(3) DUTIES OF STATE COORDINATOR.— 
‘‘(A) IN
GENERAL.—A State coordinator 
shall visit selected establishments with a fre-
quency that is appropriate to ensure that se-
lected establishments are operating in a manner 
that is consistent with this Act (including regu-
lations and policies under this Act). 
‘‘(B) QUARTERLY REPORTS.—A State co-
ordinator shall, on a quarterly basis, submit to 
the Secretary a report that describes the status 
of each selected establishment that is under the 
jurisdiction of the State coordinator with re-
spect to the level of compliance of each selected 
establishment with the requirements of this Act. 
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‘‘(C) IMMEDIATE NOTIFICATION REQUIRE-
MENT.—If a State coordinator determines that 
any selected establishment that is under the ju-
risdiction of the State coordinator is in violation 
of any requirement of this Act, the State coor-
dinator shall— 
‘‘(i) immediately notify the Secretary 
of the violation; and 
‘‘(ii) deselect the selected establish-
ment or suspend inspection at the selected 
establishment. 
‘‘(4) PERFORMANCE
EVALUATIONS.—Perform-
ance evaluations of State coordinators designated 
under this subsection shall be conducted by the Sec-
retary as part of the Federal agency management 
control system. 
‘‘(e) AUDITS.— 
‘‘(1) PERIODIC AUDITS CONDUCTED BY INSPEC-
TOR
GENERAL
OF
THE
DEPARTMENT
OF
AGRI-
CULTURE.—Not later than 2 years after the effec-
tive date described in subsection (i), and not less 
often than every 3 years thereafter, the Inspector 
General of the Department of Agriculture shall con-
duct an audit of each activity taken by the Secretary 
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under this section for the period covered by the 
audit to determine compliance with this section. 
‘‘(2) AUDIT
CONDUCTED
BY
COMPTROLLER 
GENERAL
OF
THE
UNITED
STATES.—Not earlier 
than 3 years, nor later than 5 years, after the date 
of the enactment of this section, the Comptroller 
General of the United States shall conduct an audit 
of the implementation of this section to determine— 
‘‘(A) the effectiveness of the implementa-
tion of this section; and 
‘‘(B) the number of selected establishments 
selected by the Secretary to ship poultry items 
under this section. 
‘‘(f) TRANSITION GRANTS.—The Secretary may pro-
vide grants to appropriate State agencies to assist the ap-
propriate State agencies in helping establishments covered 
by this Act to transition to selected establishments. 
‘‘(g) VIOLATIONS.—Any selected establishment that 
the Secretary determines to be in violation of any require-
ment of this Act shall be transitioned to a Federal estab-
lishment in accordance with a procedure developed by the 
Secretary under subsection (b)(3)(A). 
‘‘(h) EFFECT.—Nothing in this section limits the ju-
risdiction of the Secretary with respect to the regulation 
of poultry and poultry products under this Act. 
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‘‘(i) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—This section takes effect on 
the date on which the Secretary, after providing a 
period of public comment (including through the 
conduct of public meetings or hearings), promulgates 
final regulations to carry out this section. 
‘‘(2) 
REQUIREMENT.—Not 
later 
than 
months after the date of the enactment of this sec-
tion, the Secretary shall promulgate final regulations 
in accordance with paragraph (1).’’. 
SEC. 11016. INSPECTION AND GRADING. 
(a) GRADING.—Section 203 of the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1622) is amended— 
(1) by redesignating subsection (n) as sub-
section (o); and 
(2) by inserting after subsection (m) the fol-
lowing new subsection: 
‘‘(n) GRADING PROGRAM.—To establish within the 
Department of Agriculture a voluntary fee based grading 
program for— 
‘‘(1) catfish (as defined by the Secretary under 
paragraph (2) of section 1(w) of the Federal Meat 
Inspection Act (21 U.S.C. 601(w))); and 
‘‘(2) any additional species of farm-raised fish 
or farm-raised shellfish— 
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‘‘(A) for which the Secretary receives a pe-
tition requesting such voluntary fee based grad-
ing; and 
‘‘(B) that the Secretary considers appro-
priate.’’. 
(b) INSPECTION.— 
(1) IN GENERAL.—The Federal Meat Inspec-
tion Act is amended— 
(A) in section 1(w) (21 U.S.C. 601(w)) — 
(i) by striking ‘‘and’’ at the end of 
paragraph (1); 
(ii) by redesignating paragraph (2) as 
paragraph (3); and 
(iii) by inserting after paragraph (1) 
the following new paragraph: 
‘‘(2) catfish, as defined by the Secretary; and’’; 
(B) by striking section 6 (21 U.S.C. 606) 
and inserting the following new section: 
‘‘SEC. 6. (a) IN GENERAL.—For the purposes herein-
before set forth the Secretary shall cause to be made, by 
inspectors appointed for that purpose, an examination and 
inspection of all meat food products prepared for com-
merce in any slaughtering, meat-canning, salting, packing, 
rendering, or similar establishment, and for the purposes 
of any examination and inspection and inspectors shall 
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have access at all times, by day or night, whether the es-
tablishment be operated or not, to every part of said estab-
lishment; and said inspectors shall mark, stamp, tag, or 
label as ‘Inspected and passed’ all such products found 
to be not adulterated; and said inspectors shall label, 
mark, stamp, or tag as ‘Inspected and condemned’ all such 
products found adulterated, and all such condemned meat 
food products shall be destroyed for food purposes, as 
hereinbefore provided, and the Secretary may remove in-
spectors from any establishment which fails to so destroy 
such condemned meat food products: Provided, That sub-
ject to the rules and regulations of the Secretary the provi-
sions of this section in regard to preservatives shall not 
apply to meat food products for export to any foreign 
country and which are prepared or packed according to 
the specifications or directions of the foreign purchaser, 
when no substance is used in the preparation or packing 
thereof in conflict with the laws of the foreign country to 
which said article is to be exported; but if said article shall 
be in fact sold or offered for sale for domestic use or con-
sumption then this proviso shall not exempt said article 
from the operation of all the other provisions of this chap-
ter. 
‘‘(b) CATFISH.—In the case of an examination and 
inspection under subsection (a) of a meat food product 
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derived from catfish, the Secretary shall take into account 
the conditions under which the catfish is raised and trans-
ported to a processing establishment.’’; and 
(C) by adding at the end of title I the fol-
lowing new section: 
‘‘SEC. 25. Notwithstanding any other provision of 
this Act, the requirements of sections 3, 4, 5, 10(b), and 
23 shall not apply to catfish.’’. 
(2) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendments made 
by paragraph (1) shall not apply until the date 
on which the Secretary of Agriculture issues 
final regulations (after providing a period of 
public comment, including through the conduct 
of public meetings or hearings, in accordance 
with chapter 5 of title 5, United States Code) 
to carry out such amendments. 
(B) REGULATIONS.—Not later than 18 
months after the date of the enactment of this 
Act, the Secretary of Agriculture, in consulta-
tion with the Commissioner of Food and Drugs, 
shall issue final regulations to carry out the 
amendments made by paragraph (1). 
(3) BUDGET
REQUEST.—Not later than 30 
days after the date of the enactment of this Act, the 
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Secretary of Agriculture shall submit to Congress an 
estimate of the costs of implementing the amend-
ments made by paragraph (1), including the esti-
mated— 
(A) staff years; 
(B) number of establishments; 
(C) volume expected to be produced at 
such establishments; and 
(D) any other information used in esti-
mating the costs of implementing such amend-
ments. 
SEC. 11017. FOOD SAFETY IMPROVEMENT. 
(a) FEDERAL MEAT INSPECTION ACT.—Title I of the 
Federal Meat Inspection Act is further amended by insert-
ing after section 11 (21 U.S.C. 611) the following: 
‘‘SEC. 12. NOTIFICATION. 
‘‘Any establishment subject to inspection under this 
Act that believes, or has reason to believe, that an adulter-
ated or misbranded meat or meat food product received 
by or originating from the establishment has entered into 
commerce shall promptly notify the Secretary with regard 
to the type, amount, origin, and destination of the meat 
or meat food product. 
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‘‘SEC. 13. PLANS AND REASSESSMENTS. 
‘‘The Secretary shall require that each establishment 
subject to inspection under this Act shall, at a minimum— 
‘‘(1) prepare and maintain current procedures 
for the recall of all meat or meat food products pro-
duced and shipped by the establishment; 
‘‘(2) document each reassessment of the process 
control plans of the establishment; and 
‘‘(3) upon request, make the procedures and re-
assessed process control plans available to inspectors 
appointed by the Secretary for review and copying.’’. 
(b) POULTRY PRODUCTS INSPECTION ACT.—Section 
10 of the Poultry Products Inspection Act (21 U.S.C. 
459) is amended— 
(1) by striking the section heading and all that 
follows through ‘‘SEC. 10. No establishment’’ and 
inserting the following: 
‘‘SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS. 
‘‘(a) IN GENERAL.—No establishment’’; and 
(2) by adding at the end the following: 
‘‘(b) NOTIFICATION.—Any establishment subject to 
inspection under this Act that believes, or has reason to 
believe, that an adulterated or misbranded poultry or poul-
try product received by or originating from the establish-
ment has entered into commerce shall promptly notify the 
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Secretary with regard to the type, amount, origin, and 
destination of the poultry or poultry product. 
‘‘(c) PLANS AND REASSESSMENTS.—The Secretary 
shall require that each establishment subject to inspection 
under this Act shall, at a minimum— 
‘‘(1) prepare and maintain current procedures 
for the recall of all poultry or poultry products pro-
duced and shipped by the establishment; 
‘‘(2) document each reassessment of the process 
control plans of the establishment; and 
‘‘(3) upon request, make the procedures and re-
assessed process control plans available to inspectors 
appointed by the Secretary for review and copying.’’. 
TITLE 
XII—CROP 
INSURANCE 
AND DISASTER ASSISTANCE 
PROGRAMS 
Subtitle A—Crop Insurance and 
Agricultural Disaster Assistance 
SEC. 12001. DEFINITION OF ORGANIC CROP. 
Section 502(b) of the Federal Crop Insurance Act (7 
U.S.C. 1502(b)) is amended— 
(1) by redesignating paragraphs (7) and (8) as 
paragraphs (8) and (9), respectively; and 
(2) by inserting after paragraph (6) the fol-
lowing: 
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‘‘(7) ORGANIC CROP.—The term ‘organic crop’ 
means an agricultural commodity that is organically 
produced consistent with section 2103 of the Or-
ganic Foods Production Act of 1990 (7 U.S.C. 
6502).’’. 
SEC. 12002. GENERAL POWERS. 
(a) IN GENERAL.—Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506) is amended— 
(1) in the first sentence of subsection (d), by 
striking ‘‘The Corporation’’ and inserting ‘‘Subject 
to section 508(j)(2)(A), the Corporation’’; and 
(2) by striking subsection (n). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 506 of the Federal Crop Insurance 
Act (7 U.S.C. 1506) is amended by redesignating 
subsections (o), (p), and (q) as subsections (n), (o), 
and (p), respectively. 
(2) Section 521 of the Federal Crop Insurance 
Act (7 U.S.C. 1521) is amended by striking the last 
sentence. 
SEC. 12003. REDUCTION IN LOSS RATIO. 
(a) PROJECTED LOSS RATIO.—Subsection (n)(2) of 
section 506 of the Federal Crop Insurance Act (7 U.S.C. 
1506) (as redesignated by section 12002(b)(1)) is amend-
ed— 
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(1) in the paragraph heading, by striking ‘‘AS 
OF OCTOBER 1, 1998’’; 
(2) by striking ‘‘, on and after October 1, 
1998,’’; and 
(3) by striking ‘‘1.075’’ and inserting ‘‘1.0’’. 
(b) PREMIUMS REQUIRED.—Section 508(d)(1) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(d)(1)) is 
amended by striking ‘‘not greater than 1.1’’ and all that 
follows and inserting ‘‘not greater than— 
‘‘(A) 1.1 through September 30, 1998; 
‘‘(B) 1.075 for the period beginning Octo-
ber 1, 1998, and ending on the day before the 
date of enactment of the Food, Conservation, 
and Energy Act of 2008; and 
‘‘(C) 1.0 on and after the date of enact-
ment of that Act.’’. 
SEC. 12004. PREMIUMS ADJUSTMENTS. 
Section 508(a) of the Federal Crop Insurance Act (7 
U.S.C. 1508(a)) is amended by adding at the end the fol-
lowing: 
‘‘(9) PREMIUM ADJUSTMENTS.— 
‘‘(A) PROHIBITION.—Except as provided 
in subparagraph (B), no person shall pay, 
allow, or give, or offer to pay, allow, or give, di-
rectly or indirectly, either as an inducement to 
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procure insurance or after insurance has been 
procured, any rebate, discount, abatement, 
credit, or reduction of the premium named in 
an insurance policy or any other valuable con-
sideration or inducement not specified in the 
policy. 
‘‘(B) 
EXCEPTIONS.—Subparagraph 
(A) 
does not apply with respect to— 
‘‘(i) a payment authorized under sub-
section (b)(5)(B); 
‘‘(ii) a performance-based discount au-
thorized under subsection (d)(3); or 
‘‘(iii) a patronage dividend, or similar 
payment, that is paid— 
‘‘(I) by an entity that was ap-
proved by the Corporation to make 
such payments for the 2005, 2006, or 
2007 reinsurance year, in accordance 
with subsection (b)(5)(B) as in effect 
on the day before the date of enact-
ment of this paragraph; and 
‘‘(II) in a manner consistent with 
the payment plan approved in accord-
ance with that subsection for the enti-
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ty by the Corporation for the applica-
ble reinsurance year.’’. 
SEC. 12005. CONTROLLED BUSINESS INSURANCE. 
Section 508(a) of the Federal Crop Insurance Act (7 
U.S.C. 1508(a)) (as amended by section 12004) is amend-
ed by adding at the end the following: 
‘‘(10) COMMISSIONS.— 
‘‘(A) DEFINITION
OF
IMMEDIATE
FAM-
ILY.—In this paragraph, the term ‘immediate 
family’ means an individual’s father, mother, 
stepfather, stepmother, brother, sister, step-
brother, stepsister, son, daughter, stepson, step-
daughter, 
grandparent, 
grandson, 
grand-
daughter, father-in-law, mother-in-law, brother- 
in-law, sister-in-law, son-in-law, daughter-in- 
law, the spouse of the foregoing, and the indi-
vidual’s spouse. 
‘‘(B) PROHIBITION.—No individual (in-
cluding a subagent) may receive directly, or in-
directly through an entity, any compensation 
(including any commission, profit sharing, 
bonus, or any other direct or indirect benefit) 
for the sale or service of a policy or plan of in-
surance offered under this title if— 
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