Title: SOIL Stewardship Act
Policy area: Agriculture and Food

Summary:
Strengthening Our Investment in Land Stewardship Act or the SOIL Stewardship Act
This bill amends the Food Security Act of 1985 to reauthorize and modify Department of Agriculture conservation programs, including the Environmental Quality Incentives Program and the Conservation Stewardship Program.
The bill addresses requirements for the programs relating to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2874 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2874

      To amend the Food Security Act of 1985 with respect to land 
                  stewardship, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2018

   Ms. Smith introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
      To amend the Food Security Act of 1985 with respect to land 
                  stewardship, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Our Investment in Land 
Stewardship Act'' or the ``SOIL Stewardship Act''.

SEC. 2. COMMON PROVISIONS AND PROGRAM COORDINATION.

    Subchapter A of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as 
follows:

       ``Subchapter A--Common Provisions and Program Coordination

``SEC. 1238. DEFINITIONS.

    ``In this chapter and chapter 4:
            ``(1) Agricultural operation.--The term `agricultural 
        operation' means all eligible land, regardless of whether the 
        eligible land is contiguous, that is--
                    ``(A) under the effective control of a producer at 
                the time the producer enters into a contract under the 
                applicable program; and
                    ``(B) operated with equipment, labor, management, 
                and production or cultivation practices that are 
                substantially separate from other agricultural 
                operations, as determined by the Secretary.
            ``(2) Comprehensive conservation plan.--The term 
        `comprehensive conservation plan' means a plan that--
                    ``(A) identifies and inventories resources of 
                concern;
                    ``(B) establishes benchmark data and stewardship 
                objectives;
                    ``(C) formulates and evaluates alternative 
                approaches to meeting stewardship objectives for all 
                resources of concern;
                    ``(D) selects among the alternatives under 
                subparagraph (C) and describes the particular 
                conservation systems, practices, activities, and 
                management measures to be implemented, maintained, or 
                improved that will enable the producer to meet 
                stewardship objectives for all resources of concern;
                    ``(E) contains a schedule for the planning, 
                installation, maintenance, improvement, and management 
                of the selected conservation systems, practices, 
                activities, and management measures; and
                    ``(F) contains a description and schedule for on-
                farm activities to assess and evaluate the conservation 
                systems, practices, activities, and management measures 
                described in the plan.
            ``(3) Conservation activity.--
                    ``(A) In general.--The term `conservation activity' 
                means a conservation practice, enhancement, bundle, or 
                plan.
                    ``(B) Inclusions.--The term `conservation activity' 
                includes--
                            ``(i) structural measures, vegetative 
                        measures, and land management measures, as 
                        determined by the Secretary;
                            ``(ii) planning needed to address a 
                        priority resource concern; and
                            ``(iii) development of a comprehensive 
                        conservation plan.
            ``(4) Eligible land.--
                    ``(A) In general.--The term `eligible land' means--
                            ``(i) private or Tribal land on which 
                        agricultural commodities, livestock, or forest-
                        related products are produced; and
                            ``(ii) land associated with the land 
                        described in clause (i) on which priority 
                        resource concerns could be addressed through a 
                        contract under the applicable program.
                    ``(B) Inclusions.--The term `eligible land' 
                includes--
                            ``(i) cropland;
                            ``(ii) grassland;
                            ``(iii) rangeland;
                            ``(iv) pasture land;
                            ``(v) nonindustrial private forest land; 
                        and
                            ``(vi) other land in agricultural areas 
                        (including cropped woodland, marshes, and 
                        agricultural land used or capable of being used 
                        for the production of livestock), on which 
                        priority resource concerns relating to 
                        agricultural production could be addressed 
                        through a contract under the program, as 
                        determined by the Secretary.
            ``(5) Priority resource concern.--The term `priority 
        resource concern' means a natural resource concern or problem, 
        as determined by the Secretary, that--
                    ``(A) is identified at the national, State, or 
                local level as a priority for a particular area of a 
                State;
                    ``(B) represents a significant concern in a State 
                or region; and
                    ``(C) is likely to be addressed successfully 
                through the implementation of conservation activities 
                under the applicable program.
            ``(6) Stewardship threshold.--The term `stewardship 
        threshold' means the level of management required, as 
        determined by the Secretary, to conserve and improve the 
        quality and condition of a priority resource concern using--
                    ``(A) the resource management system quality 
                criteria;
                    ``(B) predictive tools;
                    ``(C) data from past and current program 
                enrollments; and
                    ``(D) other similar means to measure conservation 
                and improvement of the priority resource concern.

``SEC. 1238A. COMMON PROVISIONS AND PROGRAM COORDINATION.

    ``(a) Common Provisions.--
            ``(1) Streamlining and coordination.--To the maximum extent 
        feasible, the Secretary shall provide for streamlined and 
        coordinated procedures for the conservation stewardship program 
        established under subchapter B and the environmental quality 
        incentives program established under chapter 4 (referred to in 
        this section as the `programs'), including applications, 
        contracting, conservation planning, conservation practices, and 
        related administrative procedures.
            ``(2) Soil health.--To the maximum extent feasible, the 
        Secretary shall manage the programs to enhance soil health and 
        build soil carbon.
            ``(3) Wildlife habitat.--To the maximum extent feasible, 
        the Secretary shall allocate not less than 10 percent of 
        funding for the programs to support conservation activities 
        benefitting wildlife habitat.
            ``(4) Organic systems.--
                    ``(A) In general.--The Secretary shall provide for 
                a funding allocation for each of the programs to 
                support organic production and transition to organic 
                production.
                    ``(B) Considerations.--In determining the funding 
                allocation under subparagraph (A), the Secretary shall 
                take into consideration certified organic acres and 
                transitioning organic acres of each State and the State 
                trend line for certified organic acres and 
                transitioning organic acres.
            ``(5) Balance.--To the maximum extent feasible, the 
        Secretary shall provide balanced treatment for crop and 
        livestock production systems in the allocation of contracts for 
        the programs.
            ``(6) Active engagement.--The Secretary shall promulgate 
        regulations that require participants in the programs to be 
        actively engaged in farming or ranching.
    ``(b) Program Coordination.--The Secretary shall coordinate 
management of the programs in a manner to facilitate the opportunity 
for a participant enrolled in the environmental quality incentives 
program under chapter 4 but not yet qualified to enroll in the 
conservation stewardship program under subchapter B to subsequently 
enroll in the conservation stewardship program once the participant has 
met the stewardship threshold for not fewer than 2 priority resource 
concerns.''.

SEC. 3. CONSERVATION STEWARDSHIP PROGRAM DEFINITIONS.

    Section 1238D of the Food Security Act of 1985 (16 U.S.C. 3838d) is 
amended to read as follows:

``SEC. 1238D. DEFINITIONS.

    ``In this subchapter:
            ``(1) Conservation stewardship plan.--The term 
        `conservation stewardship plan' means a plan that--
                    ``(A) identifies and inventories priority resource 
                concerns;
                    ``(B) establishes benchmark data and conservation 
                objectives;
                    ``(C) describes conservation activities to be 
                implemented, managed, or improved; and
                    ``(D) includes a schedule and evaluation plan for 
                the planning and installation of new conservation 
                activities and the active management of new and 
                existing conservation activities.
            ``(2) Program.--The term `program' means the conservation 
        stewardship program established by this subchapter.''.

SEC. 4. CONSERVATION STEWARDSHIP PROGRAM.

    Section 1238E of the Food Security Act of 1985 (16 U.S.C. 3838e) is 
amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``2018'' and inserting ``2023''; and
            (2) in subsection (b)(2), in the matter preceding 
        subparagraph (A), by striking ``the Agricultural Act of 2014'' 
        and inserting ``the SOIL Stewardship Act''.

SEC. 5. STEWARDSHIP CONTRACTS.

    Section 1238F of the Food Security Act of 1985 (16 U.S.C. 3838f) is 
amended--
            (1) in subsection (b), by striking paragraph (1) and 
        inserting the following:
            ``(1) Ranking of applications.--
                    ``(A) In general.--In evaluating contract offers 
                submitted under subsection (a), the Secretary shall 
                rank applications based on--
                            ``(i) the level of natural resource and 
                        environmental benefits resulting from existing 
                        conservation treatment on all applicable 
                        priority resource concerns at the time of 
                        application; and
                            ``(ii) the degree to which the proposed 
                        conservation activities effectively increase 
                        natural resource and environmental benefits.
                    ``(B) Tie breaker.--In the event of a tie in 
                ranking scores between 2 or more applications under 
                subparagraph (A), the Secretary shall rank applications 
                based on the extent to which the actual and anticipated 
                conservation natural resource and environmental 
                benefits from the contract are provided at the least 
                cost relative to other similarly beneficial contract 
                offers.'';
            (2) in subsection (d)(4), by adding at the end the 
        following:
                    ``(C) New acreage.--If, after entering into a 
                contract, a producer adds new acreage to the 
                agricultural operation, the producer may elect to add 
                the acreage to the stewardship contract during the term 
                of the current stewardship contract, if the Secretary 
                determines the additional acreage and conservation 
                treatment of those acres increases the natural resource 
                and environmental benefits of the contract.''; and
            (3) by striking subsection (e) and inserting the following:
    ``(e) Contract Renewal.--At the end of each 5-year contract period, 
the Secretary may allow the producer to renew the contract for 
additional 5-year periods if the producer--
            ``(1) demonstrates compliance with the terms of the 
        previous contract;
            ``(2) agrees to adopt new or improved conservation 
        activities across the entire agricultural operation, 
        demonstrating continual improvement, as determined by the 
        Secretary; and
            ``(3) agrees, by the end of the contract period--
                    ``(A) to plan, install, maintain, and actively 
                manage such conservation activities as will allow the 
                producer to meet or exceed the stewardship threshold of 
                not fewer than 2 additional priority resource concerns; 
                or
                    ``(B) to adopt or improve such conservation 
                activities as the Secretary determines to be necessary 
                to achieve higher levels of performance with respect to 
                not fewer than 2 existing priority resource concerns 
                specified by the Secretary in the initial contract.''.

SEC. 6. DUTIES OF THE SECRETARY.

    Section 1238G of the Food Security Act of 1985 (16 U.S.C. 3838g) is 
amended--
            (1) in subsection (a)(2), by striking ``not less than 5'';
            (2) in subsection (c)(2)--
                    (A) by striking ``$18'' and inserting ``$23''; and
                    (B) by inserting ``including supplemental payments 
                under subsection (e), payments for cover crop 
                activities under subsection (d), and payments for 
                comprehensive conservation planning under subsection 
                (f),'' after ``financial assistance,'';
            (3) in subsection (d)--
                    (A) in paragraph (2), in the matter preceding 
                subparagraph (A), by striking ``, to the maximum extent 
                practicable,'';
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (5) and (6), respectively;
                    (C) by inserting after paragraph (2) the following:
            ``(3) Payments for cover crop activities.--Any annual 
        payment provided by the Secretary under this subchapter that is 
        for a cover crop activity, as determined by the Secretary, 
        shall be in an amount that is not less than 125 percent of the 
        amount that would have been paid under paragraph (2).
            ``(4) Minimum payment.--A payment to a producer under this 
        subsection shall not be less than $1,500 per year.''; and
                    (D) in paragraph (6) (as so redesignated), by 
                striking subparagraph (A) and inserting the following:
                    ``(A) calculate and provide payments for existing 
                activities, additional activities, and supplemental 
                payments, as described under subsection (e); and'';
            (4) by striking subsection (e) and inserting the following:
    ``(e) Supplemental Payments for Resource-Conserving Crop Rotations 
and Managed Intensive Rotational Grazing.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Managed intensive rotational grazing.--The 
                term `managed intensive rotational grazing' means a 
                grazing system in which animals are regularly and 
                systematically moved to fresh pasture in such a way 
                as--
                            ``(i) to maximize the quantity and quality 
                        of forage growth;
                            ``(ii) to improve manure distribution and 
                        nutrient cycling;
                            ``(iii) to increase carbon sequestration 
                        from greater forage harvest;
                            ``(iv) to improve the quality and quantity 
                        of cover for wildlife;
                            ``(v) to provide permanent cover to protect 
                        the soil from erosion; and
                            ``(vi) to improve water quality.
                    ``(B) Resource-conserving crop rotation.--The term 
                `resource-conserving crop rotation' means a crop 
                rotation that--
                            ``(i) includes not fewer than 1 resource-
                        conserving crop (as defined by the Secretary);
                            ``(ii) reduces erosion;
                            ``(iii) improves soil fertility and tilt;
                            ``(iv) interrupts pest cycles;
                            ``(v) builds soil carbon; and
                            ``(vi) in applicable areas, reduces 
                        depletion of soil moisture or otherwise reduces 
                        the need for irrigation.
            ``(2) Availability of payments.--The Secretary shall 
        provide additional payments to producers that, in participating 
        in the program, agree to adopt, manage, and maintain, or 
        improve, manage, and maintain--
                    ``(A) resource-conserving crop rotations; or
                    ``(B) managed intensive rotational grazing.
            ``(3) Eligibility.--To be eligible to receive a payment 
        under paragraph (2), a producer shall agree to adopt, manage, 
        and maintain or improve, maintain, and manage, resource-
        conserving crop rotations, or managed intensive rotational 
        grazing for the term of the contract.
            ``(4) Minimum payment.--Supplemental payments under this 
        subsection shall not be less than $20 per acre.'';
            (5) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (g), (h), (i), and (j), respectively;
            (6) by inserting after subsection (e) the following:
    ``(f) Payment for Comprehensive Conservation Planning.--
            ``(1) In general.--In the case of a producer who develops 
        and implements a comprehensive conservation plan to address all 
        priority resource concerns in a manner that meets or exceeds 
        the stewardship thresholds, a payment for planning shall be not 
        less than $1,000 and not more than $3,000 per year.
            ``(2) Payment.--A payment under paragraph (1) shall be set 
        on a sliding scale, determined by the following factors:
                    ``(A) The number of resource concerns addressed in 
                the comprehensive conservation plan.
                    ``(B) The number of eligible land use types 
                included in the operation.'';
            (7) in subsection (g) (as so redesignated)--
                    (A) by inserting ``, including joint operations,'' 
                after ``legal entity'' the first place it appears;
                    (B) by striking ``in the aggregate'' and inserting 
                ``when combined with payments for management practices 
                under the environmental quality incentives program 
                established under chapter 4''; and
                    (C) by striking ``2018'' and inserting ``2023'';
            (8) by striking subsection (i) (as so redesignated) and 
        inserting the following:
    ``(i) Organic Certification.--
            ``(1) Coordination.--The Secretary shall establish a 
        coordinated, user-friendly, and transparent means by which 
        producers may initiate or maintain organic certification under 
        the Organic Foods Production Act of 1900 (7 U.S.C. 6501 et 
        seq.) while participating in a contract under the program.
            ``(2) Transition.--The Secretary shall establish suites of 
        organic transition conservation activities to be available 
        through the program.''; and
            (9) in subsection (j) (as so redesignated)--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively;
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) require participants in the program to be actively 
        engaged in farming or ranching;''; and
                    (C) in paragraph (2) (as so redesignated), by 
                striking ``subsection (f)'' and inserting ``subsection 
                (g)''.

SEC. 7. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PURPOSES.

    Section 1240(4) of the Food Security Act of 1985 (16 U.S.C. 
3839aa(4)) is amended by striking ``livestock, pest or irrigation 
management'' and inserting ``crops and livestock, pest management, or 
irrigation management''.

SEC. 8. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) 
is amended to read as follows:

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Development practice.--The term `development 
        practice' means the construction or installation of a 
        structure, facility, or equipment, or another related activity 
        that is consistent with the purposes of the program, as 
        determined by the Secretary.
            ``(2) Payment.--The term `payment' means financial 
        assistance provided to a producer for performing practices, 
        including compensation for--
                    ``(A) incurred costs associated with planning, 
                design, materials, equipment, installation, labor, 
                management, maintenance, or training;
                    ``(B) income forgone by the producer; and
                    ``(C) expected conservation benefit.
            ``(3) Practice.--The term `practice' means 1 or more 
        conservation activities that are consistent with the purposes 
        of the program, as determined by the Secretary, including--
                    ``(A) improvements to eligible land of the 
                producer, including--
                            ``(i) land management practices;
                            ``(ii) vegetative practices;
                            ``(iii) forest management; and
                            ``(iv) other practices that the Secretary 
                        determines would further the purposes of the 
                        program; and
                    ``(B) the development of plans appropriate for the 
                eligible land of the producer, including--
                            ``(i) comprehensive nutrient management 
                        planning;
                            ``(ii) comprehensive conservation planning; 
                        and
                            ``(iii) other plans that the Secretary 
                        determines would further the purposes of the 
                        program.
            ``(4) Program.--The term `program' means the environmental 
        quality incentives program established by this chapter.''.

SEC. 9. ESTABLISHMENT AND ADMINISTRATION.

    Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) 
is amended--
            (1) in subsection (a), by striking ``2019'' and inserting 
        ``2023'';
            (2) in subsection (b)(2), by striking ``10 years'' and 
        inserting ``5 years'';
            (3) in subsection (d)--
                    (A) in paragraph (2), by striking subparagraph (A) 
                and inserting the following:
                    ``(A)(i) for practices that are not development 
                practices, 75 percent of the costs associated with 
                planning, design, materials, equipment, installation, 
                labor, management, maintenance, or training; or
                    ``(ii) for development practices, except as 
                provided in subsection (h)(3), 50 percent of the costs 
                associated with planning, design, materials, 
                installation, management, maintenance, or training;''; 
                and
                    (B) in paragraph (4)--
                            (i) in subparagraph (A), by striking clause 
                        (i) and inserting the following:
                            ``(i)(I) for practices that are not 
                        development practices, to not more than 90 
                        percent of the costs associated with planning, 
                        design, materials, equipment, installation, 
                        labor, management, maintenance, or training; or
                            ``(II) for development practices, to not 
                        more than 75 percent of the costs associated 
                        with the planning, design, materials, 
                        equipment, installation, labor management, 
                        maintenance, or training;''; and
                            (ii) in subparagraph (B)(i), by striking 
                        ``may be provided'' and inserting ``shall be 
                        provided'';
            (4) in subsection (h)--
                    (A) in paragraph (1), by striking ``water 
                conservation or irrigation practice'' and inserting 
                ``water-conserving irrigation practice''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Priority.--In providing payments to a producer for a 
        development practice that is a water conservation or irrigation 
        practice, the Secretary shall give priority to applications in 
        which--
                    ``(A) consistent with the law of the State in which 
                the eligible land of the producer is located, the 
                producer agrees to reduce water use in the operations 
                of the producer; or
                    ``(B) the producer agrees not to use any associated 
                water savings to bring new land, other than incidental 
                land needed for efficient operations, under irrigated 
                production, unless the producer is participating in a 
                watershed-wide project that will effectively conserve 
                water, as determined by the Secretary.
            ``(3) Payment rate.--Applications given priority under 
        paragraph (2) shall be subject to the payment rate described in 
        subsection (d)(2)(A)(i).''; and
            (5) in subsection (i)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Eligibility requirements.--As a condition for 
        receiving payments under this subsection, a producer shall 
        agree to develop and implement conservation practices for 
        certified organic production that are consistent with the 
        regulations promulgated under the Organic Foods Production Act 
        of 1990 (7 U.S.C. 6501 et seq.) and the purposes of this 
        chapter.'';
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.

SEC. 10. LIMITATION ON PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended to read as follows:

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) Total Payments.--A person or legal entity may not receive, 
directly or indirectly, payments under this chapter and chapter 2 that, 
in the aggregate, exceed $450,000 for all contracts entered into under 
this chapter and chapter 2 by the person or legal entity during the 
period of fiscal years 2019 through 2023, regardless of the number of 
contracts entered into under this chapter by the person or legal 
entity.
    ``(b) Management Payments.--A person or legal entity may not 
receive, directly or indirectly, payments under the management 
component of this chapter and chapter 2 that, in aggregate, exceed 
$200,000 for all contracts entered into under the management component 
of this chapter and chapter 2 by the person or legal entity during the 
period of fiscal years 2019 through 2023, regardless of the number of 
contracts entered into under this chapter by the person or legal 
entity.''.

SEC. 11. COMMODITY CREDIT CORPORATION.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended--
            (1) in subsection (a)(5), by striking ``practicable--'' and 
        all that follows through the period at the end of subparagraph 
        (E) and inserting ``practicable, $1,750,000,000 for each fiscal 
        year through fiscal year 2023, including not less than 
        $500,000,000 for each fiscal year for management activities 
        that assist producers in protecting sources of drinking 
        water.'';
            (2) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``2009 through 2018'' and 
                        inserting ``2019 through 2023'';
                            (ii) in subparagraph (A), by striking ``5 
                        percent'' and inserting ``15 percent''; and
                            (iii) in subparagraph (B), by striking ``5 
                        percent'' and inserting ``15 percent'';
                    (B) by redesignating paragraphs (2), (3), and (4), 
                as paragraphs (4), (5), and (6), respectively;
                    (C) by inserting after paragraph (1) the following:
            ``(2) Wildlife.--Of the funds made available for each of 
        fiscal years 2019 through 2023 to carry out the environmental 
        quality incentives program and the acres made available for 
        each of those fiscal years to carry out the conservation 
        stewardship program, the Secretary shall use not less than 10 
        percent for conservation activities that support the 
        restoration, development, protection, and improvement of 
        wildlife habitat on eligible land, including--
                    ``(A) upland wildlife habitat;
                    ``(B) wetland wildlife habitat;
                    ``(C) habitat for threatened and endangered 
                species;
                    ``(D) fish habitat;
                    ``(E) wildlife habitat on pivot corners and other 
                irregular areas of a field; and
                    ``(F) other types of wildlife habitat, as 
                determined by the Secretary.
            ``(3) Organic.--Of the funds made available for each of 
        fiscal years 2019 through 2023 to carry out the environmental 
        quality incentives program and the acres made available for 
        each of those fiscal years to carry out the conservation 
        stewardship program, the Secretary shall allocate funding to 
        the States to support organic production and the transition to 
        organic production, to be determined by each State's--
                    ``(A) certified and transitioning organic 
                operations;
                    ``(B) organic acreage; and
                    ``(C) 2016 organic and transitioning participation 
                in the environmental quality incentives program.'';
                    (D) in paragraph (4) (as so redesignated), by 
                striking ``paragraph (1)'' and inserting ``paragraphs 
                (1), (2), and (3)''; and
                    (E) in paragraph (5) (as so redesignated), by 
                striking ``paragraph (1)'' and inserting ``paragraphs 
                (1), (2), and (3)''; and
            (3) in subsection (i)(2), by striking ``pursuant to section 
        1240G(b)'' and inserting ``by the Secretary''.
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