I 
110TH CONGRESS 
1ST SESSION H. R. 1766 
To amend conservation and biofuels programs of the Department of Agri-
culture to promote the compatible goals of economically viable agricul-
tural production and reducing nutrient loads in the Chesapeake Bay 
and its tributaries by assisting agricultural producers to make beneficial, 
cost-effective changes to cropping systems, grazing management, and 
nutrient management associated with livestock and poultry production, 
crop production, bioenergy production, and other agricultural practices 
on agricultural land within the Chesapeake Bay watershed, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Mr. VAN HOLLEN (for himself, Mr. SCOTT of Virginia, Mr. GILCHREST, Mr. 
TOM DAVIS of Virginia, Mr. HOYER, Mr. WYNN, Mrs. JO ANN DAVIS of 
Virginia, Mr. RUPPERSBERGER, Ms. NORTON, Mr. SARBANES, Mr. 
WOLF, Mr. MORAN of Virginia, Mrs. DRAKE, Mr. CUMMINGS, Mr. HIN-
CHEY, Mr. PLATTS, Mr. CARNEY, and Mr. HALL of New York) intro-
duced the following bill; which was referred to the Committee on Agri-
culture 
A BILL 
To amend conservation and biofuels programs of the Depart-
ment of Agriculture to promote the compatible goals 
of economically viable agricultural production and reduc-
ing nutrient loads in the Chesapeake Bay and its tribu-
taries by assisting agricultural producers to make bene-
ficial, cost-effective changes to cropping systems, grazing 
management, and nutrient management associated with 
livestock and poultry production, crop production, bio-
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energy production, and other agricultural practices on 
agricultural land within the Chesapeake Bay watershed, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Chesapeake’s Healthy and Environmentally Sound Stew-
ardship of Energy and Agriculture Act of 2007’’ or the 
‘‘CHESSEA Act of 2007’’ . 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Findings. 
Sec. 3. Environmental quality incentives program. 
Sec. 4. Regional water quality enhancement program. 
Sec. 5. Conservation innovation grants. 
Sec. 6. Conservation reserve program. 
Sec. 7. Conservation security program. 
Sec. 8. Comprehensive planning technical assistance pilot program. 
Sec. 9. Wetlands reserve program. 
Sec. 10. Agricultural management assistance. 
Sec. 11. Biorefinery and biofuel project grants. 
Sec. 12. Renewable energy systems and energy efficiency improvements pro-
gram. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Chesapeake Bay is the largest estuary 
in North America, the world’s most productive estu-
ary, and a resource of worldwide significance. 
(2) The Chesapeake Bay watershed encom-
passes portions of six States, New York, Pennsyl-
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vania, Delaware, Maryland, Virginia, and West Vir-
ginia, and the District of Columbia, and contains 
150 major tributaries. 
(3) Agricultural operations, small family farms 
in particular, is a defining feature of the economy, 
heritage, culture, landscape, and environment of the 
States of the Chesapeake Bay watershed, and these 
agricultural operations account for nearly one quar-
ter of the land in the Chesapeake Bay watershed, 
stretching across 10 million acres and involving tens 
of thousands of individual farmers. 
(4) Unfortunately, these same agricultural oper-
ations are the source of more than 40 of the nitro-
gen and phosphorus loads going into the Chesapeake 
Bay; 
(5) In the landmark regional agreement known 
as Chesapeake 2000, the Federal Government, the 
six States of the Chesapeake Bay watershed, and the 
District of Columbia, agreed to significantly reduce 
annual nitrogen, phosphorus, and sediment loadings 
by 2010 to restore the Chesapeake Bay and its tidal 
tributaries sufficiently to remove them from the list 
of impaired waters under the Clean Water Act. 
(6) Current efforts to implement Chesapeake 
2000 and achieve the nitrogen and phosphorus re-
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duction goals specified in the agreement are signifi-
cantly underfunded. 
(7) The implementation of improved conserva-
tion practices in agricultural operations in the 
Chesapeake Bay watershed and increased agricul-
tural bioenergy production can serve the dual pur-
poses of enhancing the environmental health of the 
Chesapeake Bay and the economic vitality of farm-
ers in the watershed. 
SEC. 3. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. 
(a) EXTENSION.— 
(1) FUNDING
EXTENSION
AND
INCREASE.— 
Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended by striking para-
graph (6) and inserting the following new para-
graph: 
‘‘(6) The environmental quality incentives pro-
gram under chapter 4, using, to the maximum ex-
tent practicable, $2,000,000,000 in each of fiscal 
years 2008 through 2013.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
1240B of such Act (16 U.S.C. 3839aa–2) is amend-
ed— 
(A) in subsection (a)(1), by striking 
‘‘2010’’ and inserting ‘‘2013’’; and 
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(B) in subsection (g), by striking ‘‘2007’’ 
and inserting ‘‘2013’’. 
(b) PRIORITY GIVEN TO STATE ALLOCATIONS.—Sec-
tion 1240F of such Act (16 U.S.C. 3839aa–6) is amend-
ed— 
(1) by striking ‘‘To’’ and inserting ‘‘(a) ASSIST-
ANCE, INFORMATION, AND TRAINING.—To’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(b) INTERSTATE
WATERSHEDS.—When making 
program allocations to States, the Secretary shall give pri-
ority to States located within watersheds that— 
‘‘(1) encompass more than one State; 
‘‘(2) are recognized under the Clean Water Act 
as having nutrient-related water quality impairments 
or sediment-related water quality impairments (or 
both); and 
‘‘(3) are subject to State-approved tributary 
strategies or watershed management plans designed 
to address such impairments. 
‘‘(c) PROHIBITED ALLOCATION FACTOR.—The Sec-
retary shall not use the total number of acres as an alloca-
tion factor.’’. 
(c) COST SHARE PAYMENT EXCEPTION.—Section 
1240B(d)(2) of such Act (16 U.S.C. 3839aa–2(d)(2)) is 
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amended by striking subparagraph (A) and inserting the 
following new subparagraph: 
‘‘(A) LIMITED RESOURCE AND BEGINNING 
FARMERS.—The Secretary may increase the 
amount provided to a producer under para-
graph (1) to not more than 90 percent if the 
producer is a limited resource or beginning 
farmer or rancher, as determined by the Sec-
retary, but in no event shall the cost-share pay-
ment under the program be less than 15 per-
cent more than the payment that the Secretary 
may determine under paragraph (1).’’ 
(d) FOREST CONSERVATION AND PERFORMANCE IN-
CENTIVES FOR STATES.—Chapter 4 of subtitle D of title 
XII of such Act is amended by adding at the end the fol-
lowing new sections: 
‘‘SEC. 1240J. PROMOTION OF FOREST STEWARDSHIP PRAC-
TICES. 
‘‘(a) COST-SHARE PAYMENTS AND INCENTIVE PAY-
MENTS.—In carrying out the program under this chapter, 
the Secretary shall promote forest stewardship by pro-
viding cost-share payments and incentive payments to 
non-industrial private forest owners to carry out eligible 
conservation activities, to— 
‘‘(1) improve water quality; 
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‘‘(2) improve habitat for at-risk species; 
‘‘(3) restore ecologically important forest types; 
or 
‘‘(4) control invasive species. 
‘‘(b) PRIORITY.—The Secretary shall give priority to 
projects that involve multiple landowners implementing el-
igible conservation activities in a coordinated way to ad-
dress the purposes described in subsection (a). 
‘‘(c) FUNDING.— 
‘‘(1) AMOUNTS.—The Secretary shall use funds 
of the Commodity Credit Corporation to carry out 
this section in the following amounts: 
‘‘(A) $25,000,000 for fiscal year 2008. 
‘‘(B) $45,000,000 for fiscal year 2009. 
‘‘(C) $60,000,000 for fiscal year 2010. 
‘‘(D) $75,000,000 for each of fiscal years 
2011 and 2012. 
‘‘(E) $100,000,000 for fiscal year 2013. 
‘‘SEC. 1240K. PERFORMANCE INCENTIVES FOR STATES. 
‘‘(a) HIGH LEVEL OF PERFORMANCE BONUS.—For 
each of fiscal years 2008 through 2013, 10 percent of the 
funds made available under this chapter shall be reserved 
by the Secretary for bonus allocations to States that dem-
onstrate a high level of performance in implementing the 
program. 
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‘‘(b) SPECIAL
CONSIDERATIONS.—In evaluating 
State performance under subsection (a), the Secretary 
shall reward States that— 
‘‘(1) consistently meet the requirements of sec-
tion 1240C in evaluating offers and payments; 
‘‘(2) dedicate a portion of their annual environ-
mental quality incentives program allocation to 
multi-producer cooperative efforts to address specific 
resource concerns; 
‘‘(3) collaborate with other Federal and State 
agencies, local governments, educational institutions, 
and for-profit and nonprofit organizations to mon-
itor and evaluate the environmental outcomes associ-
ated with implementation of the program; 
‘‘(4) demonstrate effective and efficient pro-
gram delivery, including the provision of adequate 
technical assistance to all program participants 
through appropriate staffing and through coopera-
tion with other Federal, State, Tribal, and local 
agencies, for-profit and nonprofit organizations, and 
individuals with demonstrated expertise in the plan-
ning and implementation of conservation practices, 
systems, and approaches; 
‘‘(5) support and encourage innovative ap-
proaches to addressing resource concerns; 
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‘‘(6) effectively leverage Federal funding with 
local and state matching funds; and 
‘‘(7) demonstrate effective outreach and innova-
tive approaches to reaching and serving beginning 
farmers and ranchers, limited-resource producers, 
and operators with lower rates of historical partici-
pation in Federal farm and conservation programs.’’. 
SEC. 4. REGIONAL WATER QUALITY ENHANCEMENT PRO-
GRAM. 
(a) PROGRAM REQUIREMENTS.—Chapter 5 of sub-
title D of title XII of the Food Security Act of 1985 is 
amended by inserting after section 1240P (16 U.S.C. 
3839bb–3) the following new section: 
‘‘SEC. 1240Q. REGIONAL WATER QUALITY ENHANCEMENT 
PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—In order to increase, fa-
cilitate, and further implement cooperative partnerships 
between States, producers, and other interested persons 
or parties to improve water quality in the largest 
waterbodies in the United States, the Secretary shall enter 
into agreements with States containing all or a portion 
of such a waterbody or containing tributaries of such a 
waterbody to assist such States to carry out special initia-
tives focused on the enhanced stewardship of such 
waterbodies. The Chesapeake Bay and its tributaries shall 
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be one of the waterbodies regarding which the Secretary 
enters into agreements under this section. 
‘‘(b) TERM OF AGREEMENT.—An agreement under 
this section shall be for a term of not shorter than three 
years nor longer than five years. 
‘‘(c) COMPETITIVE PROCESS; SET-ASIDE.—The Sec-
retary shall establish a competitive process for considering 
applications for agreements under this section, consistent 
with the evaluation criteria listed in subsection (d). How-
ever, not less than 25 percent of total funds available for 
agreements under this section shall be awarded to States 
containing a portion of the Chesapeake Bay watershed. 
‘‘(d) EVALUATION OF APPLICATIONS; CRITERIA.—In 
evaluating applications for an agreement under this sec-
tion, the Secretary shall consider the extent to which the 
program proposed by the State will accomplish the fol-
lowing: 
‘‘(1) Most cost-effectively achieve the greatest 
improvements to water quality, utilizing one or more 
of the following: 
‘‘(A) Adoption of management practices 
and systems, including soil amendments, soil 
and stalk testing, alternative cropping systems, 
cover crops, buffers, and other measures. 
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‘‘(B) Innovative or advanced conservation 
techniques that hold substantial promise for 
producing long-term, cost-effective improve-
ments to water quality. 
‘‘(C) Reduction in nutrient inputs to agri-
cultural operations, such as through feed man-
agement. 
‘‘(D) Manure processing and treatment 
technologies to permit more efficient use and 
transport of manure to produce energy, restore 
nutrient-deficient lands, or reduce air emissions. 
‘‘(2) Leverage financial and technical resources 
from sources other than the programs authorized by 
this subtitle, including financial and technical re-
sources provided by other Federal agencies, State 
agencies, local governments, nongovernmental orga-
nizations and associations, and other private sector 
entities. 
‘‘(3) Provide necessary technical assistance to 
producers and other cooperators participating in the 
project or initiative, including in the application cost 
estimates for technical assistance and whether such 
assistance will be provided by technical service pro-
viders. 
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‘‘(4) Establish a program of education and out-
reach to attract new participants. 
‘‘(5) Serve as a transferable model for other re-
gional watershed efforts. 
‘‘(6) Evaluate progress and measure results. 
‘‘(e) PRIORITIES.—To the maximum extent prac-
ticable, consistent with the requirements of subsection (d), 
the Secretary shall ensure that, each fiscal year, agree-
ments are entered into under this section to support 
projects and initiatives that collectively address water 
quality impairments. 
‘‘(f) SELECTION PROCESS.—In evaluating applica-
tions under this section, the Secretary shall consider rec-
ommendations from scientists, regional experts, and other 
persons with appropriate expertise in the Department of 
Agriculture, other Federal and State agencies, and inter-
est groups, including producer associations and conserva-
tion and environmental organizations. 
‘‘(g) COST SHARE REQUIREMENTS.—The Secretary 
shall not require more than 25 percent of the cost of a 
project or initiative supported under an agreement entered 
into under this section to come from non-Federal sources. 
However, the Secretary may award more points to projects 
or initiatives offering to cover a higher percentage of the 
cost of the project or initiative from non-Federal sources. 
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If the Secretary establishes a cost-share requirement for 
a project or initiative, the Secretary shall allow the use 
of in-kind contributions to meet that requirement. 
‘‘(h) STATE.—In this section, the term ‘State’ in-
cludes the District of Columbia.’’. 
(b) FUNDING.—Section 1241(a) of such Act (16 
U.S.C. 3841(a)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(8) The regional water quality enhancement 
program under section 1240Q, using, to the max-
imum extent practicable— 
‘‘(A) $175,000,000 for fiscal year 2008; 
and 
‘‘(B) $200,000,000 in each of fiscal years 
2009 through 2013.’’. 
SEC. 5. CONSERVATION INNOVATION GRANTS. 
Section 1240H of such Act (16 U.S.C. 3839aa–8) is 
amended— 
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; 
(2) in subsection (b)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(B) by striking ‘‘and’’ at the end of para-
graph (2); 
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(C) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(4) include a plan for technology transfer.’’; 
and 
(3) by adding at the end the following new sub-
sections: 
‘‘(d) TECHNOLOGY TRANSFER.—In making grants 
under this section, the Secretary shall give priority to 
projects that ensure transferability of innovative conserva-
tion technologies and approaches to achieve widespread 
implementation by producers. 
‘‘(e) ADDITIONAL FUNDING.—In addition to amounts 
made available under section 1241(a)(6) to carry out this 
chapter, the Secretary shall use $100,000,000 in funds of 
the Commodity Credit Corporation in each of fiscal years 
2008 through 2013 to carry out this section:’’. 
SEC. 6. CONSERVATION RESERVE PROGRAM. 
(a) EXTENSION.— 
(1) FUNDING EXTENSION.—Section 1241(a) of 
the Food Security Act of 1985 (16 U.S.C. 3841(a)) 
is amended— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘2007’’ and inserting ‘‘2013’’; and 
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(B) in paragraph (1), by striking ‘‘The’’ 
and inserting ‘‘For each of fiscal years 2002 
through 2013, the’’. 
(2) CONFORMING AMENDMENTS.—Section 1231 
of such Act (16 U.S.C. 3831) is amended— 
(A) in subsection (a), by striking ‘‘2007’’ 
and inserting ‘‘2013’’; 
(B) in subsection (d), by striking ‘‘2007’’ 
and inserting ‘‘2013’’; 
(C) in subsection (e)(3), by striking 
‘‘2002’’ and inserting ‘‘2008’’; and 
(D) in subsection (h)(1), by striking 
‘‘2007’’ and inserting ‘‘2013’’. 
(b) ENROLLMENT GOALS AND USE OF GENERAL 
SIGNUP.—Section 1231(d) of such Act (16 U.S.C. 
3831(d)) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting: 
‘‘(1) ACREAGE AUTHORIZED.—The Secretary’’; 
and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(2) ENROLLMENT GOALS.—For the period be-
ginning on the date of the enactment of this para-
graph and ending on December 31, 2013, the Sec-
retary shall establish a goal to enroll not less than 
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7,000,000 acres of eligible land through the contin-
uous enrollment program and the conservation re-
serve enhancement program, with priority given to 
riparian buffers, restored wetlands, and other habi-
tats known to improve water quality and called for 
under established, State-approved tributary strate-
gies or watershed management plans to reduce nu-
trients and sediments from agricultural sources to 
impaired waters. 
‘‘(3) 
LIMITATION
ON
USE
OF
GENERAL 
SIGNUP.—To the maximum extent practicable, the 
Secretary shall ensure that not more than 80 per-
cent of the acres maintained in the conservation re-
serve at any one time during the 2008 through 2013 
calendar years are acres that were enrolled through 
a general signup under section 1234(c)(2)(A). For 
an offer to be accepted into the conservation reserve 
under the general signup, the offer must have an en-
vironmental benefit index score at or above a thresh-
old that is 15 percent higher than the average of the 
thresholds used in general signups during fiscal 
years 1996 through 2006, adjusted for changes in 
the index over these fiscal years.’’. 
(c) PAYMENT LIMITATION.—Section 1234(f)(1) of 
such Act is (16 U.S.C. 3834(f)) is amended by adding at 
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