‘‘(2) formulating the terms and conditions of 
such contracts; and 
‘‘(3) enforcing such contracts. 
‘‘(g) ENFORCEMENT.—The Secretary, and any per-
son or governmental entity designated by the Secretary, 
may enforce a contract entered into by the Secretary 
under this section.’’. 
SEC. 212. PLANNING FOR AGRICULTURE GRANTS. 
Subtitle F of title XII of the Food Security Act of 
1985 (16 U.S.C. 3841 et seq.) is amended by adding after 
section 1256 the following new section: 
‘‘SEC. 1257. GRANTS TO PROMOTE PLANNING FOR AGRI-
CULTURE. 
‘‘(a) IN GENERAL.—To encourage State and local ef-
forts to retain farmland and promote food security, the 
Secretary shall provide competitive grants to State and 
local units of government to carry out planning projects 
for the purposes described in subsection (b). 
‘‘(b) PROJECT REQUIREMENTS.— 
‘‘(1) Projects eligible to receive planning assist-
ance under this subsection shall be projects designed 
to support— 
‘‘(A) farm and ranchland protection and 
transition; 
‘‘(B) agricultural economic development; or 
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‘‘(C) local and regional food processing and 
other agricultural infrastructure. 
‘‘(2) A project will receive priority for funding 
if the project— 
‘‘(A) addresses more than one of the ele-
ments in subsection (b)(1)); or 
‘‘(B) coordinates activities pursuant to one 
or more of the elements in subsection (b)(1) 
among different levels of government. 
‘‘(c) GRANTS.— 
‘‘(1) IN GENERAL.—From amounts made avail-
able to carry out this subsection, the Secretary shall 
make grants to State and local units of government 
to assist them in developing plans that assess needs 
and identify implementation strategies for furthering 
any of the purposes described in paragraph (2)(a). 
‘‘(2) 
MAXIMUM
AMOUNT.—The 
maximum 
amount of a grant provided under this subsection 
shall be $100,000. 
‘‘(3) MATCHING FUNDS REQUIREMENTS.—The 
Federal share of any project that receives funding 
under this subsection may not exceed 50 percent of 
the total cost of the project. 
‘‘(4) TERM.—The term of a grant made under 
this subsection may not exceed 2 years. 
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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $20,000,000 for each 
of fiscal years 2008 through 2013 to carry out this sub-
section, to remain available until expended.’’. 
SEC. 213. EXCLUSION OF PAYMENTS UNDER DEPARTMENT 
OF 
AGRICULTURE 
CONSERVATION 
PRO-
GRAMS FROM ADJUSTED GROSS INCOME 
LIMITATION. 
(a) EXCLUSION.—Subsection (b)(2) of section 1001D 
of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is 
amended by striking subparagraph (C). 
(b) DURATION OF ADJUSTED GROSS INCOME LIMI-
TATION.—Such section is further amended by striking 
subsection (e). 
SEC. 214. REAUTHORIZATION OF AND INCREASED FUNDING 
FOR WILDLIFE HABITAT INCENTIVE PRO-
GRAM. 
(a) EXTENSION AND FUNDING.—Section 1241(a)(7) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a)(7)) 
is amended by striking subparagraphs (A) through (D) 
and inserting the following new subparagraphs: 
‘‘(A) $100,000,000 in fiscal year 2008; 
‘‘(B) $140,000,000 in fiscal year 2009; 
‘‘(C) $200,000,000 in each of fiscal years 
2010 and 2011; and 
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‘‘(D) $300,000,000 in each of fiscal years 
2012 and 2013.’’. 
(b) INCENTIVE PAYMENTS FOR AGREEMENTS BENE-
FITTING LISTED SPECIES.—Section 1240N of such Act 
(16 U.S.C. 3839bb–1) is amended by adding at the end 
the following new subsection: 
‘‘(d) INCENTIVE PAYMENTS FOR CERTAIN AGREE-
MENTS AND APPLICATIONS.—In a case in which the Sec-
retary enters into an agreement or contract to protect or 
restore habitat for a federally or State-listed endangered, 
threatened, or candidate species or for applications that 
further the goals and objectives of a State’s comprehensive 
wildlife conservation plan, the Secretary may provide in-
centive payments to landowners to protect or restore the 
habitat, including the cost of management activities need-
ed during the term of the agreement or contract.’’. 
SEC. 215. 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 2008 
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) ELIGIBLE LAND.—Section 1231(b) of such Act 
(16 U.S.C. 3831(b)) is amended— 
(1) by striking the period at the end of para-
graph (1) and inserting a semicolon; 
(2) in paragraph (4), by striking ‘‘or’’ at the 
end of subparagraph (C); 
(3) by striking the period at the end of para-
graph (5) and inserting a semicolon; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(6) marginal pasture land or hay land that is 
otherwise ineligible, if the land is to be primarily de-
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voted to native vegetation appropriate to the locale 
and— 
‘‘(A) will provide suitable habitat for a 
State or federally listed threatened or endan-
gered species or a species determined by the 
Secretary of the Interior to be species of con-
cern; or 
‘‘(B) will contribute to the restoration of a 
critically endangered ecosystem or endangered 
ecosystem as defined by the Secretary.’’. 
(c) ENROLLMENT GOALS.—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 
7,000,000 acres of eligible land through the contin-
uous enrollment program and the conservation re-
serve enhancement program; and 
‘‘(3) GENERAL SIGNUP.— 
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‘‘(A) To the maximum extent practicable, 
the Secretary shall ensure that not more than 
80 percent of the acres maintained in the con-
servation reserve 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). 
‘‘(B) For an offer to be accepted into the 
conservation reserve under the general signup, 
the Secretary shall require an offer to have an 
environmental benefit index score at or above a 
threshold that is 15 percent higher than the av-
erage of the thresholds used in general signups 
during fiscal years 1996 through 2006, ad-
justed for changes in the index over these fiscal 
years.’’. 
(d) BALANCE OF NATURAL RESOURCE PURPOSES.— 
Section 1231(j) of such Act (16 U.S.C. 3831(j)) is amend-
ed— 
(1) by striking ‘‘In determining’’ and inserting 
the following: 
‘‘(1) EQUITABLE BALANCE OF CONSERVATION 
PURPOSES.—In determining’’; 
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(2) by striking the period at the end and insert-
ing ‘‘, but need not balance all conservation purposes 
with respect to each particular contract offer.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) WILDLIFE.—In considering the extent to 
which a contract offer will achieve the conservation 
purposes of the program related to wildlife habitat, 
the Secretary shall consider the extent to which the 
contract offer will contribute to increased popu-
lations of wildlife, including waterfowl, nongame 
grassland birds and neotropical migrants, and assist 
in the recovery of at-risk species.’’. 
(e) DUTIES OF PARTICIPANTS.—Section 1232(a) of 
such Act (16 U.S.C. 3832(a)) is amended— 
(1) in paragraph (4)— 
(A) by redesignating subparagraphs (A) 
and (B) as subparagraphs (B) and (C), respec-
tively; and 
(B) by inserting before subparagraph (B), 
as so redesignated, the following new subpara-
graph: 
‘‘(A) approved vegetative cover shall not 
include vegetative cover inappropriate to the lo-
cale;’’; 
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(2) by redesignating paragraphs (5) through 
(10) as paragraphs (6) through (11); respectively; 
(3) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) to undertake appropriate management ac-
tivities on the land as needed throughout the term 
of the contract to achieve the purposes of the con-
servation reserve program;’’; and 
(4) in subparagraph (A)(i)(II) of paragraph (8), 
as so redesignated, by striking ‘‘may be conducted;’’ 
and inserting ‘‘, taking into account grassland types 
and species, location, weather conditions, and other 
factors that determine to what extent harvesting and 
grazing activities will advance the conservation pur-
poses of the program;’’. 
(f) CONSERVATION PLAN.—Section 1232(b)(1) of 
such Act (16 U.S.C. 3832(b)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘; and’’ 
and inserting ‘‘, including appropriate management 
activities required by subsection (a)(5);’’ and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) criteria for conducting any commer-
cial use to be permitted, including criteria for 
managed harvesting and grazing specifying fre-
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quency, timing, number of animal units, per-
centage of field, and other criteria to ensure 
that managed harvesting and grazing advances 
the conservation purposes of the program; 
and’’. 
(g) COST-SHARE AND MANAGEMENT ASSISTANCE.— 
Section 1234(b) of such Act (16 U.S.C. 3834(b)) is 
amended by adding at the end the following new para-
graph: 
‘‘(6) MANAGEMENT
COSTS.—The Secretary 
shall pay 75 percent of the cost of management ac-
tivities, including control of invasive species, re-
quired under a contract entered into under this sub-
chapter, subject to such limits as the Secretary may 
establish.’’. 
(h) ACCEPTANCE OF CONTRACT OFFERS.—Section 
1234(c)(3) of such Act (16 U.S.C. 3834(c)(3)) is amend-
ed— 
(1) by striking ‘‘In determining’’ and inserting 
the following: 
‘‘(A) MAXIMIZING ENVIRONMENTAL BENE-
FITS.—In determining’’; 
(2) by striking ‘‘may’’ and all that follows 
through ‘‘take into consideration’’ and inserting 
‘‘shall take into consideration’’; 
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(3) by striking ‘‘benefits; and’’ and inserting 
‘‘benefits. The Secretary shall establish criteria for 
the acceptance of contract offers that will maximize 
environmental benefits, including criteria related to 
the characteristics of the land that is the subject of 
the contract offer, its location, proposed cover and 
proposed management practices.’’; 
(4) by striking ‘‘(B) establish’’ and inserting 
the following: 
‘‘(B) FLEXIBILITY.—The Secretary may 
establish’’; 
(5) by striking ‘‘abated.’’ and inserting ‘‘abated, 
in order to more effectively address specific State or 
regional resource concerns and conservation prior-
ities.’’; and 
(6) by adding at the end the following new sub-
paragraph: 
‘‘(C) RELATIONSHIP TO OTHER CONSERVA-
TION PROGRAMS.—In the enrollment of land in 
the conservation reserve established under this 
subchapter, the Secretary shall give a priority 
to land that cannot produce comparable envi-
ronmental benefits if maintained in agricultural 
production and enrolled in the environmental 
quality incentives program or other program de-
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signed to assist producers in improving the en-
vironmental performance of working agricul-
tural land.’’. 
(i) CONSERVATION RESERVE ENHANCEMENT PRO-
GRAM.—Section 1234(f)(1) of such Act is (16 U.S.C. 
3834(f)) is amended by adding at the end the following 
new sentence: ‘‘The Secretary may waive this payment 
limitation for persons participating in a conservation re-
serve enhancement program if the Secretary determines 
such a waiver is necessary to achieve the objectives of the 
conservation reserve enhancement program.’’. 
(j) EARLY TERMINATION CLAUSE FOR BIOENERGY 
PRODUCTION.—At the end of section 1231(e), add the fol-
lowing new paragraph: 
‘‘(4) EARLY
TERMINATION
OPTION
FOR
BIO-
ENERGY PRODUCTION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
offer to producers applying for entry into the 
Conservation Reserve through the general 
signup under section 1234(c)(2)(A), the option 
of including a contract provision to allow the af-
fected acreage to exit from the reserve at any 
time after an initial period of 3 years but prior 
to competing a full contract term in order to 
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produce a sustainable cellulosic bioenergy crop 
on the affected acres. 
‘‘(B) ELIGIBLE LANDS.—Lands eligible to 
be covered by an early termination from the re-
serve are those acres having an erodibility index 
value less than 15 and are otherwise eligible for 
enrollment in the conservation reserve except 
land that is to be enrolled under the continuous 
signup or the conservation reserve enhancement 
program under section 1234(c)(2)(B). 
‘‘(C) RESTRICTIONS.—In the event that a 
producer with an early termination clause in 
the conservation reserve contract chooses to ex-
ercise this option, the Secretary shall require 
the producer to restrict any agricultural produc-
tion during the remaining term that the af-
fected acres would have had under the contract 
to the production of a sustainable cellulosic bio-
energy crop on the lands. 
‘‘(D) PAYMENT
REDUCTION.—If a pro-
ducer chooses to have the option clause included 
in the conservation reserve contract, the Sec-
retary shall reduce the annual rental payment 
otherwise payable for the contract to be paid on 
those acres during the time of enrollment. 
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‘‘(E) CONTRACT TERMINATION.—If a pro-
ducer exercises the option to have the affected 
acreage leave the reserve in order to produce a 
sustainable cellulosic bioenergy crop, the Sec-
retary shall terminate the CRP contract and 
cease making any payment to the producer for 
these acres.’’. 
SEC. 216. WETLANDS RESERVE PROGRAM. 
(a) EXTENSION.— 
(1) FUNDING EXTENSION.—Section 1241(a)(2) 
of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(2)) is amended by striking ‘‘The’’ and in-
serting ‘‘For each of fiscal years 2002 through 
2013, the’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1237(c) of such Act (16 U.S.C. 3837(c)) is amended 
by striking ‘‘2007’’ and inserting ‘‘2013’’. 
(b) MAXIMUM ENROLLMENT.—Section 1237(b)(1) of 
such Act (16 U.S.C. 3837(b)(1)) is amended by striking 
‘‘2,275,000 acres’’ and inserting ‘‘5,000,000 acres’’. 
(c) WETLAND EASEMENT CONSERVATION PLAN.— 
Section 1237A(b)(3) of such Act (16 U.S.C. 3837a(b)(3)) 
is amended by inserting before the semicolon at the end 
the following: ‘‘and activities necessary to maintain hydro-
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logic, habitat, and other functional values of the wet-
lands’’. 
(d) COST-SHARE AND MANAGEMENT ASSISTANCE.— 
Section 1237C of such Act (16 U.S.C. 3837c) is amend-
ed— 
(1) in subsection (a)(1), by inserting ‘‘including 
necessary hydrologic and habitat maintenance activi-
ties,’’ after ‘‘values,’’; and 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(4) MANAGEMENT
COSTS.—The Secretary 
may make payments to owners to cover up to the 
full actual cost of undertaking any ongoing or peri-
odic management activities necessary to maintain 
the functional values of wetland enrolled in the wet-
lands reserve program.’’. 
SEC. 217. PILOT PROGRAM FOR CONSERVATION RISK MAN-
AGEMENT. 
Chapter 5 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 1240R. PILOT PROGRAM FOR CONSERVATION RISK 
MANAGEMENT. 
‘‘(a) FINDINGS.—Congress finds the following: 
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‘‘(1) Numerous studies have identified risk as a 
major barrier to the adoption of well established con-
servation measures such as Best Management Prac-
tices (BMPs). 
‘‘(2) Studies have determined that conservation 
risk management guarantees are among the most 
cost effective means of inducing conservation adop-
tion. 
‘‘(3) The Pennsylvania Department of Agri-
culture has successfully operated an experimental 
conservation risk management program in conjunc-
tion with the Agricultural Conservation Innovation 
Center of the American Farmland Trust. 
‘‘(b) PILOT PROGRAM REQUIRED.—The Secretary 
shall establish a pilot program to support innovative con-
servation risk management tools to encourage the imple-
mentation of conservation and best management practices 
on working lands. 
‘‘(b) CONSERVATION RISK MANAGEMENT.—The Sec-
retary shall undertake a pilot project in the locations spec-
ified in paragraph (c) to encourage the adoption of con-
servation practices and best management practices on 
working lands by offering producers innovative tools to 
manage the business and production risk of implementing 
conservation and/or best management practices on some 
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portion of their operations. Such risk management tools 
shall include price and yield guarantees that are contin-
gent on conversion to conservation and/or best manage-
ment practices, such as reduced application rates of nutri-
ents. 
‘‘(c) PILOT PROJECTS.—Pilot projects in conserva-
tion risk management shall be undertaken in the following 
locations: 
‘‘(1) Chesapeake Bay watershed. 
‘‘(2) Great Lakes Basin. 
‘‘(3) New York’s Finger Lakes Region. 
‘‘(4) Ohio River Watershed. 
‘‘(d) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall provide $20 mil-
lion each of fiscal years 2008 through 2013 to carry out 
the pilot conservation risk management program author-
ized by this section. The funds shall be allocated in the 
following manner: 
‘‘(1) $10 million to establish and maintain a 
guarantee pool, from which, payments can be made 
to producers participating in the pilot conservation 
risk management program that suffered losses when 
implementing conservation and/or best management 
practices. 
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‘‘(2) $5 million to administer and deliver the 
pilot conservation risk management program to pro-
ducers. 
‘‘(3) $5 million for research to improve and 
maintain the integrity of the pilot conservation risk 
management program. The research shall focus on 
the following priority areas: 
‘‘(A) Impact of short-term and long-term 
weather changes on the performance of con-
servation and best management practices. 
‘‘(B) Genomic markers indicating nutrient 
insufficiency. 
‘‘(C) Improving actuarial analysis and per-
formance. 
‘‘(D) Impact of new fertility recommenda-
tions on yield and net returns. 
‘‘(E) Impact of reduced tillage practices 
for continuous corn on yield and net returns. 
‘‘(F) Research on other risk management 
tools to improve the adoption of conservation 
and best management practices. 
‘‘(G) Impact of emerging technologies and 
enhanced nutrient management techniques, 
such as variable rate applications, in-season nu-
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trient testing, precision farming practices, on 
yield and net returns. 
‘‘(e) REPORT.—The Secretary shall conduct an as-
sessment of the effectiveness of the conservation risk man-
agement pilot and publish reports, available to the public, 
with results of the assessment. Such assessments shall be 
undertaken at least midway during and at the end of the 
pilot program.’’. 
Subtitle B—Conservation Corridor 
Demonstration Program 
SEC. 221. CONSERVATION CORRIDOR DEMONSTRATION 
PROGRAM. 
(a) FINDINGS.—Congress finds the following: 
(1) The Chesapeake Bay restoration will not 
achieve its goals as expected under the Chesapeake 
2000 agreement by the 2010 deadline. 
(2) The Delmarva Peninsula, comprised of the 
Eastern Shore of the Chesapeake Bay in Maryland 
and Virginia and the State of Delaware contributes 
a large percentage of nutrients and sediment load-
ings to the Chesapeake Bay each year. 
(3) Agricultural lands, forests and open space 
provide the greatest contribution per dollar of invest-
ment to water quality improvements and are critical 
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to the restoration of water quality in the Chesapeake 
Bay. 
(4) Effective, efficient and targeted use of fund-
ing for conservation programs on farms on the Del-
marva Peninsula is the best way to ensure meaning-
ful contributions of the very willing agricultural pro-
duction industries to be better environmental stew-
ards and contribute more to the Chesapeake Bay 
restoration. 
(b) DELMARVA CONSERVATION CORRIDOR DEM-
ONSTRATION PROGRAM.—The Secretary shall establish 
the program, known as the ‘‘Conservation Corridor Dem-
onstration Program’’, under which the States of Delaware, 
Maryland, and Virginia or any one of those States shall 
submit a plan to integrate agriculture and forestry con-
servation programs, coordinated across the landscape, of 
the Department of Agriculture and State and local efforts 
toward conservation on agricultural lands and sustain-
ability of farming on the Peninsula. 
(c) SUBMISSION
OF
CONSERVATION
CORRIDOR 
PLAN.— 
(1) SUBMISSION AND PROPOSAL.—To be eligi-
ble to participate in the demonstration program, a 
State, or combination of States referred to in sub-
section (b) shall— 
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(A) submit to the Secretary a plan that— 
(i) proposes specific criteria and com-
mitment of resources in the geographic re-
gion designated in the plan; and 
(ii) describes how the linkage of Fed-
eral, State, and local resources will im-
prove— 
(I) the economic viability of agri-
culture; and 
(II) the environmental integrity 
of the watersheds in the Delmarva Pe-
ninsula; 
(B) demonstrate to the Secretary, in devel-
oping the plan, the State, or combination of 
States has solicited and taken into account the 
views of local residents. 
(2) DRAFT
OF
MEMORANDUM
OF
AGREE-
MENT.—If the conservation corridor plan is sub-
mitted by more than one State, the plan shall pro-
vide a draft memorandum of agreement among enti-
ties in each submitting State. 
(d) REVIEW OF PLAN.—Not later than 90 days after 
the date of receipt of a conservation corridor plan, the Sec-
retary— 
(1) shall review the plan; and 
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(2) may approve the plan for implementation 
under this subtitle if the Secretary determines that 
the plan meets the requirements specified in sub-
section (e). 
(e) CRITERIA FOR APPROVAL.—The Secretary may 
approve a plan only if, as determined by the Secretary, 
the plan provides for each of the following: 
(1) 
VOLUNTARY
ACTIONS.—Actions 
taken 
under the plan— 
(A) are voluntary; 
(B) require the consent of willing land-
owners; and 
(C) provide a mechanism by which the 
landowner may withdraw such consent without 
adverse consequences other than the loss of any 
payments to the landowner conditioned on con-
tinued enrollment of the land. 
(2) NO EFFECT ON UNENROLLED LAND.—The 
enrollment of land in a conservation program incor-
porated through the plan will neither— 
(A) adversely affect any adjacent land not 
so enrolled; nor 
(B) create any buffer zone on such 
unenrolled land. 
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(3) SUFFICIENT
STAFFING.—Staffing, consid-
ering both Federal and non-Federal resources, is 
sufficient to ensure success of the plan. 
SEC. 222. IMPLEMENTATION OF CONSERVATION CORRIDOR 
PLAN. 
(a) MEMORANDUM OF AGREEMENT.—On approval of 
a conservation corridor plan, the Secretary may enter into 
a memorandum of agreement with the State, local govern-
ment, or combination of States that submitted the plan 
to— 
(1) guarantee specific program resources for 
implementation of the plan; 
(2) establish various compensation rates to the 
extent that the parties to the agreement consider 
justified; and 
(3) provide streamlined and integrated paper-
work requirements. 
(b) CONTINUED COMPLIANCE WITH PLAN APPROVAL 
CRITERIA.—The Secretary shall terminate the memo-
randum of agreement entered into under subsection (a) 
with respect to an approved conservation corridor plan and 
cease the provision of resources for implementation of the 
plan if the Secretary determines that, in the implementa-
tion of the plan— 
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(1) the State or combination of States that sub-
mitted the plan has deviated from— 
(A) the plan; 
(B) the criteria on which approval of the 
plan was conditioned; or 
(C) the cost-sharing requirements or any 
other condition of the plan; or 
(2) the economic viability of agriculture in the 
geographic region designated in the plan is being 
hindered. 
(c) PROGRESS REPORT.—At the end of the 3-year pe-
riod that begins on the date on which funds are first pro-
vided with respect to a conservation corridor plan under 
the demonstration program, the State, local government, 
or combination of States that submitted the plan shall 
submit to the Secretary— 
(1) a report on the effectiveness of the activities 
carried out under the plan; and 
(2) an evaluation of the economic viability of 
agriculture in the geographic region designated in 
the plan. 
(d) DURATION.—The demonstration program shall 
be carried out for not less than 3 nor more than 5 years 
beginning on the date on which funds are first provided 
under the demonstration program. 
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SEC. 223. FUNDING REQUIREMENTS. 
(a) COST SHARING.— 
(1) REQUIRED NON-FEDERAL SHARE.—Subject 
to paragraph (2), as a condition on the approval of 
a conservation corridor plan, the Secretary shall re-
quire the State and local participants to contribute 
financial resources sufficient to cover at least 50 
percent of the total cost of the activities carried out 
under the plan. 
(2) EXCEPTION.—The Secretary may reduce 
the cost-sharing requirement in the case of a specific 
project or activity under the demonstration program 
on good cause and on demonstration that the project 
or activity is likely to achieve extraordinary natural 
resource benefits. 
(b) RESERVATION OF FUNDS.—The Secretary shall 
direct funds (under programs amended by subtitle A of 
this title) on a priority basis to implement the plan by 
prioritizing to projects in areas identified by the plan. 
SEC. 224. RELATION TO EXISTING PROGRAM. 
This subtitle supercedes subtitle G of title II of the 
Farm Security and Rural Investment Act of 2002 (Public 
Law 107–171; 16 U.S.C. 3801 note). 
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TITLE III—ENERGY 
SEC. 301. DEFINITION OF BIOMASS. 
Section 9001(3)(B)(i) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8101(3)(B)(i)) 
is amended by inserting ‘‘and crop waste’’ after ‘‘agricul-
tural crops’’. 
SEC. 302. RESEARCH ON BIOBASED PRODUCTS. 
Section 9002(k)(2)(A) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8102(k)(2)(A)) 
is amended— 
(1) by striking ‘‘$1,000,000’’ and inserting 
‘‘$10,000,000’’; and 
(2) by striking ‘‘2002 through 2007’’ and in-
serting ‘‘2008 through 2013’’. 
SEC. 303. DEVELOPMENT OF BIOREFINERIES. 
Section 9003(h) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8103(h)) is amended to 
read as follows: 
‘‘(h) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section $100,000,000 for each of fiscal 
years 2008 through 2013.’’. 
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SEC. 304. ENERGY AUDIT AND RENEWABLE ENERGY DEVEL-
OPMENT PROGRAM. 
Section 9005(i) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8105(i)) is amended to 
read as follows: 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$25,000,000 for each of fiscal years 2008 through 2013.’’. 
SEC. 305. RENEWABLE ENERGY SYSTEMS AND ENERGY EF-
FICIENCY IMPROVEMENTS PROGRAM. 
Section 9006 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8106) is amended— 
(1) in subsection (c), by adding at the end the 
following new paragraph: 
‘‘(3) 
PREFERENCE
FOR
COMMUNITY 
PROJECTS.—In awarding grants or providing loans 
under subsection (a), the Secretary shall give pref-
erence for activities that— 
‘‘(A) are undertaken jointly by more than 
one eligible entity in a local community, as de-
termined by the Secretary; 
‘‘(B) involve direct cooperation between 
two or more eligible entities, as determined by 
the Secretary; or 
‘‘(C) foster community or cooperative ap-
proaches to renewable energy and energy effi-
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100 
ciency development, as determined by the Sec-
retary.’’; 
(2) by striking subsection (f); 
(3) by redesignating subsection (e) as sub-
section (f); 
(4) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) PRODUCTION-BASED INCENTIVE IN LIEU OF 
GRANT.— 
‘‘(1) IN GENERAL.—In addition to the authority 
under subsection (a), the Secretary shall, on the re-
quest of an applicant eligible to receive payments 
under this section, make production-based payments 
to the applicant in lieu of a grant. 
‘‘(2) CONTINGENCY.—The Secretary may not 
make a production-based payment under paragraph 
(1) unless the applicant demonstrates documented 
energy production and sales from a renewable en-
ergy system to a third party. 
‘‘(3) LIMITATION.—The value of a production- 
based payment under this subsection may not exceed 
the lesser of— 
‘‘(A) 25 percent of the eligible project 
costs; or 
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101 
‘‘(B) any other limit that the Secretary 
considers appropriate.’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(g) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section— 
‘‘(1) $60,000,000 for fiscal year 2008, to re-
main available until expended; 
‘‘(2) $90,000,000 for fiscal year 2009, to re-
main available until expended; 
‘‘(3) $130,000,000 for fiscal year 2010, to re-
main available until expended; 
‘‘(4) $180,000,000 for fiscal year 2011, to re-
main available until expended; and 
‘‘(5) $250,000,000 for each of fiscal years 2012 
and 2013, to remain available until expended.’’. 
SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT. 
Section 310 of the Biomass Research and Develop-
ment Act of 2000 (7 U.S.C. 7624 note; Public Law 106– 
224) is amended to read as follows: 
‘‘SEC. 310. FUNDING. 
‘‘(a) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
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102 
carry out this title $25,000,000 for each of fiscal years 
2008 through 2013. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad-
dition to amounts transferred under subsection (a), there 
is authorized to be appropriated to carry out this title 
$200,000,000 for each of fiscal years 2008 through 2013. 
‘‘(c) AVAILABILITY
OF
FUNDS.—Amounts made 
available under subsection (a) or appropriated pursuant 
to the authorization of appropriations in subsection (b) 
shall remain available until expended.’’. 
SEC. 
307. 
COOPERATIVE 
RESEARCH 
AND 
EXTENSION 
PROJECTS FOR CARBON CYCLE, RENEWABLE 
ENERGY, AND CLIMATE CHANGE IN THE 
NORTHEAST 
AND 
MID-ATLANTIC 
UNITED 
STATES. 
The Agricultural Risk Protection Act of 2000 (Public 
Law 106–224) is amended by inserting after section 227 
the following: 
‘‘SEC. 228. COOPERATIVE RESEARCH AND EXTENSION 
PROJECTS FOR CARBON CYCLE, RENEWABLE 
ENERGY, AND CLIMATE CHANGE IN THE 
NORTHEAST 
AND 
MID-ATLANTIC 
UNITED 
STATES. 
‘‘(a) IN GENERAL.—The Secretary shall provide 
grants to eligible universities described in subsection (b) 
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103 
in order to conduct research on carbon cycle, renewable 
energy, and climate change. 
‘‘(b) ELIGIBLE NORTHEAST
AND MID-ATLANTIC 
UNIVERSITIES.—The eligible universities or consortiums 
containing one or more eligible universities described in 
this subsection are— 
‘‘(1) Cornell University; 
‘‘(2) the University of the District of Columbia; 
and 
‘‘(3) public universities in the following States: 
‘‘(A) Maine. 
‘‘(B) Delaware. 
‘‘(C) Connecticut. 
‘‘(D) Maryland. 
‘‘(E) Massachusetts. 
‘‘(F) New Hampshire. 
‘‘(G) New Jersey. 
‘‘(H) New York. 
‘‘(I) Pennsylvania. 
‘‘(J) Rhode Island. 
‘‘(K) Vermont. 
‘‘(L) Virginia. 
‘‘(c) USE.—The universities described in subsection 
(b) shall use funds provided pursuant to a grant under 
this section to— 
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104 
‘‘(1) conduct research to improve the scientific 
basis of using land management practices to in-
crease soil carbon sequestration, including research 
on the use of new technologies to increase carbon 
cycle effectiveness, such as biotechnology and 
nanotechnology; 
‘‘(2) enter into partnerships to identify, develop, 
and evaluate agricultural best practices, including 
partnerships between— 
‘‘(A) Federal, State, or private entities; 
and 
‘‘(B) the Department of Agriculture; 
‘‘(3) develop computer models to predict and 
assess the carbon cycle; 
‘‘(4) estimate and develop mechanisms to meas-
ure carbon levels made available as a result of— 
‘‘(A) voluntary Federal conservation pro-
grams; 
‘‘(B) private and Federal forests; and 
‘‘(C) other land uses; 
‘‘(5) develop outreach programs, in coordination 
with the Cooperative State Research, Education, and 
Extension Service of the Department of Agriculture, 
to share information on carbon cycle and agricul-
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105 
tural best practices that is useful to agricultural pro-
ducers; 
‘‘(6) conduct research on the effects of in-
creased greenhouse gases and global warming upon 
agriculture in the Northeast and Mid-Atlantic re-
gions of the United States; and 
‘‘(7) conduct studies of the potential for pro-
duction of— 
‘‘(A) ethanol and other biofuels from cel-
lulosic materials produced in the Northeast and 
Mid-Atlantic regions of the United States; 
‘‘(B) electricity produced from cellulosic 
materials produced in the Northeast and Mid- 
Atlantic regions of the United States; and 
‘‘(C) natural gas produced from agricul-
tural waste and animal waste produced in the 
Northeast and Mid-Atlantic regions of the 
United States. 
‘‘(d) ADMINISTRATIVE COSTS.—Not more than three 
percent of the funds made available pursuant to subsection 
(e) may be used for administrative costs incurred in car-
rying out this section. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$15,000,000 for each of fiscal years 2008 through 2013.’’. 
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106 
SEC. 308. INDUSTRIAL SITE REDEVELOPMENT THROUGH 
CELLULOSIC PROGRAM. 
Section 9010 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8108) is amended— 
(1) in subsection (a)(1), to read as follows: 
‘‘(1) BIOFUEL.—The term ‘biofuel’ means liq-
uid transportation fuel, including biodiesel, fuel 
grade ethanol, and woody biomass.’’; 
(2) in subsection (a)(3)(A), to read as follows: 
‘‘(A) residue and waste material from the 
production of agricultural crops (including 
wheat and rice straw, corn stover, sugar ba-
gasse, and trimmings from fruits and tree 
nuts);’’; 
(3) by striking subsection (a)(4) and inserting 
the following new paragraphs: 
‘‘(4) ELIGIBLE SITE.—The term ‘eligible site’ 
means either an active industrial or processing facil-
ity (including a distillery, ethanol plant, or paper 
mill), a site that once held such a facility that is no 
longer in active use, or land contiguous with and im-
mediately surrounding an active industrial or proc-
essing facility or a site that once held such a facility 
that is no longer in active use. 
‘‘(5) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means any project that utilizes an eligible 
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107 
site for the industrial production of biofuel directly 
from an eligible commodity. 
‘‘(6) ELIGIBLE PRODUCER.—The term ‘eligible 
producer’ means a producer operating an eligible 
project.’’; and 
(4) by striking subsections (b) and (c) and in-
serting the following new subsections: 
‘‘(b) INDUSTRIAL SITE REDEVELOPMENT THROUGH 
CELLULOSIC PROGRAM.— 
‘‘(1) GRANTS, LOANS, AND
LOAN
GUARAN-
TEES.—The Secretary shall provide grants, loans, 
and loan guarantees to an eligible producer for the 
following activities: 
‘‘(A) Purchase of equipment for an eligible 
project. 
‘‘(B) Purchase of construction or related 
services for an eligible project. 
‘‘(C) Construction of infrastructure for an 
eligible project. 
‘‘(2) PRODUCTION BASED PAYMENTS.— 
‘‘(A) IN GENERAL.—In lieu of providing a 
grant under paragraph (a), the Secretary may 
provide annual payments to an eligible producer 
based on demonstrated production of biofuel 
from eligible commodities. 
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108 
‘‘(B) MAXIMUM PAYMENT PER GALLON.— 
The Secretary may provide payments to an eli-
gible producer of not more than two dollars for 
every gallon of biofuel produced by the eligible 
producer in a fiscal year. 
‘‘(3) LIMITATIONS.— 
‘‘(A) GRANTS.— 
‘‘(i) IN
GENERAL.—Grants provided 
under paragraph (1) may not exceed 
$25,000,000 per eligible project. 
‘‘(ii) GRANTS, 
LOANS, 
AND
LOAN 
GUARANTEES.—The 
total 
combined 
amount of grants, loans, and loan guaran-
tees provided under paragraph (1) to an el-
igible producer or for an eligible project 
may not exceed $50,000,000. 
‘‘(B) PRODUCTION BASED PAYMENTS.— 
‘‘(i) IN GENERAL.—Production based 
payments provided under paragraph (2) 
may not exceed $25,000,000. 
‘‘(ii) PRODUCTION BASED PAYMENTS, 
LOANS, 
AND
LOAN
GUARANTEES.—The 
total combined amount of production based 
payments provided under paragraph (2) 
and loans and loan guarantees provided 
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109 
under paragraph (1) to an eligible pro-
ducer or for an eligible project may not ex-
ceed $50,000,000. 
‘‘(4) MATCHING
REQUIREMENT
FOR
GRANTS, 
LOANS, AND
LOAN
GUARANTEES.—A recipient of 
funds under this paragraph (1) shall provide match-
ing funds from non-Federal sources in an amount 
equal to or greater than the amount of Federal 
funds received. 
‘‘(c) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out 
this section not more than $150,000,000 for each of fiscal 
years 2008 through 2013.’’. 
SEC. 309. FARM AND RANCH ENERGY EFFICIENCY REBATE 
PROGRAM. 
(a) IN GENERAL.—The Secretary shall provide com-
petitive grants to eligible entities described in subsection 
(b) to provide rebates for farmers, ranchers, rural school 
districts, and rural small businesses to purchase renewable 
energy systems and make energy efficiency improvements. 
(b) ELIGIBLE ENTITIES.—An eligible entity de-
scribed in this subsection is— 
(1) a State energy or agriculture office; 
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110 
(2) a nonprofit energy efficiency or renewable 
energy organization that uses public funds provided 
directly or under contract with a State agency; 
(3) a nonprofit organization with a dem-
onstrated ability to administer a State-wide energy 
efficiency or renewable energy rebate program; or 
(4) a consortium of entities described in para-
graphs (1), (2), and (3). 
(c) MERIT REVIEW.— 
(1) IN GENERAL.—The Secretary shall establish 
a merit review process to review applications for 
grants under subsection (a) that uses the expertise 
of the Department of Agriculture, other Federal and 
State agencies, and non-governmental organizations. 
(2) REQUIREMENTS.—In reviewing the applica-
tion of an eligible entity to receive a grant under 
subsection (a), the Secretary shall consider— 
(A) the experience and expertise of the en-
tity in establishing and administering a State- 
wide clean energy rebate program; 
(B) the annual projected energy savings or 
production increases resulting from the pro-
posed program; 
(C) the environmental benefits resulting 
from the proposed program; and 
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111 
(D) other appropriate factors, as deter-
mined by the Secretary. 
(d) MAINTENANCE OF EFFORT.—An eligible entity 
that is awarded a grant pursuant to subsection (a) shall 
provide assurances to the Secretary that funds provided 
to the entity under this subsection will be used in addition 
to, and not in place of, the amount of Federal, State, and 
local funds otherwise expended for rebate programs. 
(e) REBATE AMOUNT.—The amount of a rebate pro-
vided from a grant under this subsection shall not exceed 
the lesser of— 
(1) $10,000; or 
(2) 50 percent of the cost incurred to purchase 
a renewable energy system or an energy efficiency 
improvement. 
(f) FUNDING.—Of the funds of the Commodity Cred-
it Corporation, the Secretary shall make available to carry 
out this section $10,000,000 for each of fiscal years 2008 
through 2013. 
SEC. 310. ALTERNATIVE USES FOR BIOFUEL BYPRODUCTS. 
(a) IN
GENERAL.—The Secretary shall provide 
grants to eligible universities or consortiums containing 
one or more eligible universities in the Northeast and Mid- 
Atlantic regions of the United States described in sub-
section (b) to conduct research on alternative uses for by- 
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112 
products produced as a result of the production of biofuel 
and bio-energy. 
(b) ELIGIBLE NORTHEAST AND MID-ATLANTIC UNI-
VERSITIES.—The eligible universities referred to in sub-
section (a) are the following or consortium containing one 
of more of the following: 
(1) Cornell University. 
(2) The University of the District of Columbia. 
(3) Public universities in the following States: 
(A) Maine. 
(B) Delaware. 
(C) Connecticut. 
(D) Maryland. 
(E) Massachusetts. 
(F) New Hampshire. 
(G) New Jersey. 
(H) New York. 
(I) Pennsylvania. 
(J) Rhode Island. 
(K) Vermont. 
(L) Virginia. 
(c) GRANT LIMITATION.—The amount of a grant 
provided to an eligible university under this section shall 
not exceed the lesser of— 
(1) $1,000,000 in any fiscal year; or 
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113 
(2) 10 percent of the available funds in any fis-
cal year. 
(d) DEFINITIONS.—In this section: 
(1) BIOFUEL.—The term ‘‘biofuel’’ means liq-
uid transportation fuel, including biodiesel and fuel 
grade ethanol. 
(2) 
BIO-ENERGY.—The 
term 
‘‘bio-energy’’ 
means heat or electricity produced from any of the 
following sources: 
(A) Solar panels or concentrators. 
(B) Wind capturing devices. 
(C) Small-scale hydro-electric devices. 
(D) Methane and other bio-digesters. 
(E) Landfill digesters. 
(F) Biomass. 
(G) Waste materials from cropping or live-
stock production. 
(3) BY-PRODUCTS.—The term ‘‘by-products’’ 
means the following materials: 
(A) Solid and liquid matter produced in 
the process of producing biofuel or bio-energy 
that may be converted to food, feed, fiber, or 
energy. 
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114 
(B) Unused electricity, energy or heat pro-
duced from the biofuel or bio-energy production 
process. 
(C) Unused solid or liquid materials not 
consumed during the biofuel or bio-energy pro-
duction process. 
(e) FUNDING.—There is authorized to be appro-
priated to carry out this title $10,000,000 for each of fis-
cal years 2008 through 2013. 
SEC. 311. NATIONAL NET METERING FOR FARM ENERGY. 
(a) ADOPTION OF STANDARD.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2621(d)) is amended by adding at the end the following: 
‘‘(11) NET METERING.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall make available upon request net metering 
service to any electric consumer that the electric 
utility serves. 
‘‘(B) REFERENCES.—For purposes of im-
plementing this paragraph, any reference con-
tained in this section to the date of enactment 
of this Act shall be deemed to be a reference to 
the date of enactment of this paragraph.’’. 
(b) SPECIAL RULES FOR NET METERING.—Section 
115 of the Public Utility Regulatory Policies Act of 1978 
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115 
(16 U.S.C. 2625) is amended by adding at the end the 
following: 
‘‘(i) NET METERING.— 
‘‘(1) In this subsection: 
‘‘(A) The term ‘eligible onsite generating 
facility’ means— 
‘‘(i) a facility on the site of a residen-
tial electric consumer with a maximum 
generating capacity of 25 kilowatts or less; 
or 
‘‘(ii) a facility on the site of a com-
mercial electric consumer with a maximum 
generating capacity of 1,000 kilowatts or 
less, that is fueled solely by a renewable 
energy resource. 
‘‘(B) The term ‘net metering service’ 
means service to an electric consumer under 
which electric energy generated by that electric 
consumer from an eligible onsite generating fa-
cility and delivered to the local distribution fa-
cilities may be used to offset electric energy 
provided by the electric utility to the electric 
consumer during the applicable billing period. 
‘‘(C) The term ‘renewable energy resource’ 
means— 
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116 
‘‘(i) solar, wind, biomass, geothermal, 
or wave energy; 
‘‘(ii) landfill gas; 
‘‘(iii) energy produced from livestock 
waste; 
‘‘(iv) energy produced from a bio-di-
gester; 
‘‘(v) fuel cells; and 
‘‘(vi) a combined heat and power sys-
tem. 
‘‘(2) In undertaking the consideration and mak-
ing the determination concerning net metering es-
tablished by section 111(d)(11), the following shall 
apply: 
‘‘(A) An electric utility— 
‘‘(i) shall charge the owner or oper-
ator of an onsite generating facility rates 
and charges that are identical to those that 
would be charged other electric consumers 
of the electric utility in the same rate 
class; and 
‘‘(ii) shall not charge the owner or op-
erator of an onsite generating facility any 
additional standby, capacity, interconnec-
tion, or other rate or charge. 
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117 
‘‘(B) An electric utility that sells electric 
energy to the owner or operator of an onsite 
generating facility shall measure the quantity of 
electric energy produced by the onsite facility 
and the quantity of electricity consumed by the 
owner or operator of an onsite generating facil-
ity during a billing period in accordance with 
normal metering practices. 
‘‘(C) If the quantity of electric energy sold 
by the electric utility to an on-site generating 
facility exceeds the quantity of electric energy 
supplied by the onsite generating facility to the 
electric utility during the billing period, the 
electric utility may bill the owner or operator 
for the net quantity of electric energy sold, in 
accordance with normal metering practices. 
‘‘(D) If the quantity of electric energy sup-
plied by the onsite generating facility to the 
electric utility exceeds the quantity of electric 
energy sold by the electric utility to the onsite 
generating facility during the billing period— 
‘‘(i) the electric utility may bill the 
owner or operator of the onsite generating 
facility for the appropriate charges for the 
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118 
billing period in accordance with subpara-
graph (B); and 
‘‘(ii) the owner or operator of the on-
site generating facility shall be credited for 
the excess kilowatt-hours generated during 
the billing period, with the kilowatt-hour 
credit appearing on the bill for the fol-
lowing billing period. 
‘‘(E) An eligible onsite generating facility 
and net metering system used by an electric 
consumer shall meet all applicable safety, per-
formance, reliability, and interconnection stand-
ards established by the National Electrical 
Code, the Institute of Electrical and Electronics 
Engineers, and Underwriters Laboratories. 
‘‘(F) The Commission, after consultation 
with State regulatory authorities and nonregu-
lated electric utilities and after notice and op-
portunity for comment, may adopt, by rule, ad-
ditional control and testing requirements for 
onsite generating facilities and net metering 
systems that the Commission determines are 
necessary to protect public safety and system 
reliability. 
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119 
‘‘(G) An electric utility must provide net 
metering services to electric consumers until the 
cumulative generating capacity of net metering 
systems equals 10.0 percent of the utility’s peak 
demand during the most recent calendar year. 
‘‘(H) Nothing in this subsection precludes 
a State from imposing additional requirements 
regarding the amount of net metering available 
within a State consistent with the requirements 
of this section.’’. 
TITLE IV—HEALTHY DIETS 
SEC. 401. EXPANSION OF FRESH FRUIT AND VEGETABLE 
PROGRAM. 
Section 18 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769) is amended in subsection 
(g)— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘July 2004’’ and inserting 
‘‘July 2007’’; and 
(B) by amending subparagraphs (A) and 
(B) to read as follows: 
‘‘(A) 100 elementary or secondary schools 
in each State; 
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120 
‘‘(B) additional elementary or secondary 
schools in each State in proportion to the stu-
dent population of the State; and’’. 
(2) in paragraph (3)(A), by striking ‘‘paragraph 
(1)(B)’’ and inserting ‘‘paragraph (1)’’; 
(3) in paragraph (5), in each of subparagraphs 
(A) and (B), by striking ‘‘2008’’ and inserting 
‘‘2011’’; and 
(4) in paragraph (6)(B)— 
(A) in clause (i)— 
(i) by striking ‘‘October 1, 2004, and 
on each October 1 thereafter,’’ and insert-
ing ‘‘October 1, 2007, and on each October 
1 thereafter,’’; and 
(ii) by striking ‘‘$9,000,000’’ and in-
serting ‘‘$300,000,000’’; and 
(B) by adding at the end the following: 
‘‘(iii) ADMINISTRATIVE
EXPENSES.— 
For fiscal year 2008 and each fiscal year 
thereafter, of the amount available to carry 
out this subsection, the Secretary may re-
serve not more than 1 percent of that 
amount for administrative expenses in car-
rying out this subsection. 
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121 
‘‘(iv) 
STATE
ADMINISTRATIVE 
COSTS.—For fiscal year 2008 and each fis-
cal year thereafter, of the amount received 
by a State to carry out this subsection, the 
State may use not more than 5 percent of 
that amount for administrative expenses in 
carrying out this subsection. To be eligible 
to use such funds for such expenses, the 
State must submit to the Secretary a plan 
indicating how the State intends to use 
such funds. 
‘‘(v) FEDERAL REQUIREMENTS.—The 
Secretary shall establish requirements to 
be followed by States in administering this 
subsection. The initial set of requirements 
shall be established not later than 1 year 
after the date of the enactment of this 
clause.’’. 
SEC. 402. SECTION 32 SPECIALTY CROP PURCHASES. 
(a) MINIMUM LEVEL OF PURCHASES.—Section 32 of 
the Act of August 24, 1935 (7 U.S.C. 612c) is amended 
in the sixth sentence by inserting after ‘‘and their prod-
ucts’’ the following: ‘‘, and, for each of fiscal years 2008 
through 2013, the Secretary of Agriculture shall devote 
not less than $400,000,000 of sums appropriated under 
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this section to purchases of non-basic agricultural com-
modities, such as fruits, vegetables, and other specialty 
food crops’’. 
(b) EXPANSION OF DOD FRESH PROGRAM.—Such 
section is further amended by inserting after the sixth sen-
tence, as amended by subsection (a), the following new 
sentence: ‘‘Of the funds specified in the preceding sen-
tence, the Secretary of Agriculture shall expend not less 
than $50,000,000 fiscal year 2008, $75,000,000 for both 
fiscal years 2009 and 2010, $100,000,000 for fiscal year 
2011, and $125,000,000 for fiscal years 2012 and 2013 
for the purchase of fresh fruits and vegetables for distribu-
tion to schools and service institutions in accordance with 
section 6(a) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1755(a)).’’. 
SEC. 403. SCHOOL PREFERENCE STUDY. 
The Secretary of Agriculture shall carry out a study 
on the preferences of elementary and secondary schools 
for commodity distribution, including the extent to which 
such schools prefer commodity distribution to include 
fresh fruits and vegetables, and submit to Congress a re-
port on the results of the study. The report shall include 
an analysis of the logistical issues that would impede ef-
forts to increase the extent to which commodity distribu-
tion to schools includes fresh fruits and vegetables, and 
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shall include recommendations for improving the avail-
ability of fresh fruits and vegetables to schools. 
SEC. 404. INDEPENDENT EVALUATION OF DEPARTMENT OF 
AGRICULTURE 
COMMODITY 
PURCHASE 
PROCESS. 
(a) EVALUATION REQUIRED.—The Secretary of Agri-
culture shall arrange to have performed an independent 
evaluation of the commodity purchasing processes (and 
the statutory and regulatory authority underlying such 
processes) used by the Department of Agriculture to re-
move surplus commodities from the market and support 
commodity prices and producer incomes, especially with 
regard to activities under section 32 of the Act of August 
24, 1935 (7 U.S.C. 612c) and the importance of increas-
ing purchases of perishable specialty crops. 
(b) SUBMISSION OF RESULTS.—Not later than 1 year 
after the date of the enactment of this Act, the Secretary 
of Agriculture shall submit to Congress a report on the 
results of the evaluation. 
SEC. 405. ALLOW GEOGRAPHIC PREFERENCES IN FOOD 
PURCHASING PROGRAMS. 
Section 9(j)(1)(A) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(j)(1)(A)) is amended 
by striking ‘‘encourage’’ and inserting ‘‘allow’’. 
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124 
SEC. 406. AUTHORIZATION LEVEL FOR FARM-TO-CAFE-
TERIA ACTIVITIES. 
Section 18 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769) is amended in subsection 
(i)(2) by striking ‘‘such sums as are necessary’’ and all 
that follows through the period at the end and inserting 
‘‘to carry out this subsection $20,000,000 for each of fis-
cal years 2008 through 2013.’’. 
SEC. 407. EXTENSION OF WIC FARMER’S MARKET NUTRI-
TION PROGRAM. 
Section 17(m)(9)(A) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(m)(9)(A)) is amended— 
(1) in clause (i), by striking ‘‘2009’’ and insert-
ing ‘‘2013’’; and 
(2) by striking clause (ii) and inserting the fol-
lowing: 
‘‘(ii) MANDATORY FUNDING.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall make 
available to carry out this subsection $20,000,000 for fis-
cal year 2008, $30,000,000 for fiscal year 2009, 
$45,000,000 for fiscal year 2010, $60,000,000 for fiscal 
year 2011, and not less than $75,000,000 for fiscal year 
2012 and each fiscal year thereafter. Such funds shall re-
main available until expended.’’. 
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125 
SEC. 408. SENIOR FARMERS’ MARKET NUTRITION PRO-
GRAM. 
Section 4402 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3007) is amended— 
(1) in subsection (a) by striking ‘‘$5,000,000’’ 
and all that follows through ‘‘2007’’, and inserting 
‘‘$20,000,000 for fiscal year 2008, $30,000,000 for 
fiscal year 2009, $45,000,000 for fiscal year 2010, 
$60,000,000 for fiscal year 2011, and not less than 
$75,000,000 for fiscal year 2012 and each fiscal 
year thereafter’’; 
(2) in subsection (b)— 
(A) in paragraph (2) by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3) by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) to promote the transition to organic and 
other environmentally beneficial food production sys-
tems.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(d) ELIGIBLE PARTICIPANTS; BENEFITS LEVELS.— 
The regulations required by subsection (c)— 
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