To amend the Food Security Act of 1985, to establish a grassland reserve program to assist owners in restoring and conserving grassland.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grassland Reserve Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Vast grassland once provided critical habitat for 
        complex plant and animal communities throughout much of North 
        America.
            (2) Today, grassland areas have been largely converted to 
        other uses, threatening and eliminating plant and animal 
        communities unique to North America.
            (3) A significant portion of the remaining grassland is on 
        working ranches.
            (4) Ranchers have an economic interest in preserving the 
        remaining grassland as forage for their livestock.
            (5) Many ranchers are also concerned about losing the open 
        spaces and ``big sky'' central to the ranching way of life.
            (6) Apart from the loss of grassland, ranches themselves 
        have steadily disappeared through the years and are likely to 
        disappear at a faster rate in the immediate decade as a 
        generation of ranchers reach retirement age.
            (7) Ranch land provides important open-space buffers for 
        animal and plant habitat.
            (8) Ranching forms the economic backbone for much of the 
        rural area of the western United States.
            (9) Currently, there are no Federal programs that conserve 
        grassland, ranch land, or other land with comparable high 
        resource value, other than wetland, on a national scale.
            (10) A grassland reserve program would provide important 
        economic assistance to ranchers and other agricultural 
        producers who may be struggling financially and who may 
        voluntarily decide that participating in the program would be 
        to their advantage.

SEC. 3. GRASSLAND RESERVE PROGRAM.

    Chapter 1 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the 
following new subchapter:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary, acting through the Natural 
Resource Conservation Service, shall establish a grassland reserve 
program (referred to in this subchapter as the `program') to assist 
owners in restoring and conserving eligible land described in 
subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 1,000,000 acres.
            ``(2) Methods of enrollment.--The Secretary shall enroll in 
        the program for a willing owner not less than 100 contiguous 
        acres of land west of the 90th meridian or not less than 50 
        contiguous acres of land east of the 90th meridian through--
                    ``(A) permanent easements or 30-year easements; or
                    ``(B) in a State that imposes a maximum duration 
                for such an easement, an easement for the maximum 
                duration allowed under State law.
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that the land is--
            ``(1) natural grass or shrubland;
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by natural grass or shrubland; 
                and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is restored to natural grass or shrubland; or
            ``(3) land that is incidental to land described in 
        paragraph (1) or (2), if that incidental land is determined by 
        the Secretary to be necessary for the efficient administration 
        of the easement.

``SEC. 1238A. EASEMENTS AND AGREEMENTS.

    ``(a) Requirements of Landowner.--To be eligible to enroll land in 
the program, the owner of the land shall--
            ``(1) grant an easement that runs with the land to the 
        Secretary;
            ``(2) create and record an appropriate deed restriction in 
        accordance with applicable State law to reflect the easement;
            ``(3) provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(4) provide proof of unencumbered title to the underlying 
        fee interest in the land that is the subject of the easement;
            ``(5) agree to comply with the terms of the easement and 
        related restoration agreements; and
            ``(6) agree to the permanent retirement of any existing 
        cropland base and allotment history for the land under any 
        program administered by the Secretary.
    ``(b) Terms of Easement.--An easement under subsection (a) shall--
            ``(1) permit--
                    ``(A) common grazing practices on the land in a 
                manner that is consistent with maintaining the 
                viability of natural grass and shrub species indigenous 
                to that locality;
                    ``(B) haying, mowing, or haying for seed 
                production, except that such uses shall not be 
                permitted until after the end of the nesting season for 
                birds in the local area which are in significant 
                decline or are conserved pursuant to State or Federal 
                law, as determined by the Natural Resources 
                Conservation Service State conservationist; and
                    ``(C) construction of fire breaks and fences, 
                including placement of the posts necessary for fences;
            ``(2) prohibit--
                    ``(A) the production of row-crops, fruit trees, 
                vineyards, or any other agricultural commodity that 
                requires breaking the soil surface; and
                    ``(B) the conduct of any other activities that 
                would disturb the surface of the land covered by the 
                easement, including--
                            ``(i) plowing; and
                            ``(ii) disking; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out or facilitate the 
        administration of this subchapter.
    ``(c) Ranking Easement Applications.--
            ``(1) Establishment of criteria.--The Secretary, in 
        conjunction with State technical committees, shall establish 
        criteria to evaluate and rank applications for easements under 
        this subchapter.
            ``(2) Emphasis.--In establishing the criteria, the 
        Secretary shall emphasize support for native grass and 
        shrubland, grazing operations, and plant and animal 
        biodiversity.
    ``(d) Restoration Agreements.--The Secretary shall prescribe the 
terms by which grassland that is subject to an easement under the 
program shall be restored. The agreement shall include duties of the 
land owner and the Secretary, including the Federal share of 
restoration payments and technical assistance.
    ``(e) Violations.--
            ``(1) In general.--On the violation of the terms or 
        conditions of an easement or restoration agreement entered into 
        under this section--
                    ``(A) the easement shall remain in force; and
                    ``(B) the Secretary may require the owner to refund 
                all or part of any payments received by the owner under 
                this subchapter, with interest on the payments as 
                determined appropriate by the Secretary.
            ``(2) Periodic inspections.--The Secretary shall conduct 
        periodic inspections of land subject to easements under this 
        subchapter to ensure that the terms of the easements and 
        restoration agreements are being met, after providing the 
        landowner adequate notice of inspections. The Secretary may not 
        prohibit the landowner or a representative of the landowner 
        from being present during inspections.

``SEC. 1238B. DUTIES OF SECRETARY.

    ``(a) In General.--In return for the granting of an easement by an 
owner under this subchapter, the Secretary shall make easement payments 
and payments of the Federal share of restoration and provide technical 
assistance to the owner in accordance with this section.
    ``(b) Easement Payments.--
            ``(1) In general.--In return for the granting of an 
        easement by an owner under this subchapter, the Secretary shall 
        make easement payments to the owner in an amount equal to--
                    ``(A) in the case of a permanent easement, the fair 
                market value of the land less the grazing value of the 
                land encumbered by the easement; and
                    ``(B) in the case of a 30-year easement or an 
                easement for the maximum duration allowed under 
                applicable State law, 30 percent of the fair market 
                value of the land less the grazing value of the land 
                for the period that the land is encumbered by the 
                easement.
            ``(2) Payment schedule.--Easement payments may be provided 
        in not less than one payment nor more than 10 annual payments 
        of equal or unequal amount, as agreed to by the Secretary and 
        the owner.
    ``(c) Federal Share of Restoration.--The Secretary shall make 
payments to the owner of not more than 75 percent of the costs of 
carrying out measures and practices necessary to restore grassland 
functions and values.
    ``(d) Technical Assistance.--
            ``(1) In general.--The Secretary shall provide owners with 
        technical assistance to execute easement documents and restore 
        the grassland.
            ``(2) Reimbursement by commodity credit corporation.--The 
        Commodity Credit Corporation shall reimburse the Secretary, 
acting through the Natural Resources Conservation Service, for not more 
than 10 percent of the cost of acquisition of easement and the Federal 
share of the restoration payments obligated for that fiscal year.
    ``(e) Payments to Others.--If an owner who is entitled to a payment 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive the payment, or is succeeded by another person who renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations promulgated by the Secretary 
and without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all the 
circumstances.
    ``(f) Other Payments.--Easement payments received by an owner under 
this subchapter shall be in addition to, and not affect, the total 
amount of payments that the owner is otherwise eligible to receive 
under other Federal laws.

``SEC. 1238C. ADMINISTRATION.

    ``(a) Delegation to Private Organizations or State Agencies.--
            ``(1) In general.--The Secretary shall permit a private 
        conservation or land trust organization or a State agency to 
        hold and enforce an easement under this subchapter, in lieu of 
        the Secretary, if--
                    ``(A) the Secretary determines that granting such 
                permission is likely to promote grassland conservation; 
                and
                    ``(B) the landowner agrees to allow the private 
                conservation or land trust organization or a State 
                agency to hold and enforce the easement.
            ``(2) Application.--An organization that desires to hold an 
        easement under this subchapter shall apply to the Secretary for 
        approval.
            ``(3) Approval by secretary.--The Secretary shall approve 
        an organization under this subchapter that is constituted for 
        conservation or ranching purposes and is competent to 
        administer grassland easements.
            ``(4) Reassignment.--If an organization holding an easement 
        on land under this subchapter terminates--
                    ``(A) the owner of the land shall reassign the 
                easement to another organization described in paragraph 
                (1) or to the Secretary; and
                    ``(B) the owner and the new organization shall 
                notify the Secretary in writing that a reassignment for 
                termination has been made.
    ``(b) Regulations.--Not later than 180 days after the date of 
enactment of this subchapter, the Secretary shall issue such 
regulations as are necessary to carry out this subchapter.''.

SEC. 4. FUNDING.

    Section 1241(a)(2) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(2)) is amended by striking ``subchapter C'' and inserting 
``subchapters C and D''.

Summary: Grassland Reserve Act - Amends the Food Security Act of 1985 to direct the Secretary of Agriculture to establish a grassland reserve program for land that is or has historically been natural grass or shrubland and has significant potential for animal or plant restoration.Sets forth provisions respecting landowner easement payments and permitted and prohibited practices.